Refer to the following figure:

These are the cost curves for a perfectly competitive firm.
-The firm will break even if price is:

Question

Refer to the following figure:
  
These are the cost curves for a perfectly competitive firm.
-The firm will break even if price is:

Quizplus · Accepted Answer

At the break-even point, the firm's total revenue is equal to its total cost. This occurs at the point where the average total cost curve intersects with the demand curve, which is at a price of $3.80 in this case. Therefore, the best choice is B.

Refer to the Following Figure