You are president of a manufacturing unit of small electronic appliances. You want to reduce your break-even quantity. Other things equal, you can do this by:
A)reducing marginal revenue.
B)increasing fixed cost.
C)increasing the quantity sold, while keeping price unchanged.
D)reducing unit variable cost.

Question

Quizplus · Accepted Answer

Reducing unit variable cost would shift the cost curve downwards and reduce the break-even quantity. This can be done by finding ways to reduce production costs, such as using cheaper materials or improving production efficiency. A reduction in marginal revenue or an increase in fixed cost would have the opposite effect and increase the break-even quantity. While increasing quantity sold may increase revenue, if the cost of producing each unit remains the same, it will not reduce the break-even quantity.

You Are President of a Manufacturing Unit of Small Electronic