CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

The breakeven point is the minimum average ______ cost point in the long run.

A. variable
B. fixed
C. total
Correct Answer: C

The breakeven point occurs when total revenue (TR) equals total cost (TC), otherwise stated as the output quantity at which average total cost (ATC) equals price. In the long run it is the minimum average total cost point.

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