ECONOMICS

Detailed explanation-1: -Where the revenue line crosses the total cost line is the break-even point-costs and revenue are the same. Everything shown below this point is loss, and everything above it is profit.

Detailed explanation-2: -Answer and Explanation: The correct answer is option C) revenue line intersects the total cost line. The break-even point is the point where the total revenues are equivalent to the total costs of production, leaving nothing for profits or for for loss.

Detailed explanation-3: -Break-even point: It is the point of intersection of the total cost line and total revenue line.

Detailed explanation-4: -A firm’s break-even point occurs when at a point where total revenue equals total costs.

Detailed explanation-5: -Your break-even point is equal to your fixed costs, divided by your average selling price, minus variable costs. It is the point at which revenue is equal to costs and anything beyond that makes the business profitable.