ECONOMICS

COST ACCOUNTING

BREAK EVEN POINT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The total revenue line starts at:
A
the fixed costs line
B
zero
Explanation: 

Detailed explanation-1: -At zero level of sales, total revenue is zero. Therefore, total revenue curve starts from origin.

Detailed explanation-2: -Answer and Explanation: The total revenue can be equal to zero. For a price-setting firm, the total revenue is calculated as: TR=¯P∗Q.

Detailed explanation-3: -Economics. If marginal revenue is zero, total revenue remains unchanged. Total revenue(TR) is the total amount earned by selling all the output produced by the firms. It is calculated as the product of market price(P), and total quantity(Q) of the output sold.

Detailed explanation-4: -The Bottom Line Total revenue is the total amount of money a company brings in from selling its goods and services. It determines how well a company is bringing in money from its core operations based on demand and price.

Detailed explanation-5: -When MR is zero, then TR is maximum. Marginal revenue is the rate of Total revenue. Beyond the point when MR=0, the TR starts falling as MR becomes negative beyond this point.

There is 1 question to complete.