Exhibit 8-15 Short-run cost curves for E-Z Care lawn mowing company
-In Exhibit 8-15, what market price would cause E-Z-Care to just beak even?

Question

Exhibit 8-15 Short-run cost curves for E-Z Care lawn mowing company 
-In Exhibit 8-15, what market price would cause E-Z-Care to just beak even?

Quizplus · Accepted Answer

The break-even price is the price at which total revenue equals total costs. If $12 per lawn is the break-even point, it means that at this price, E-Z-Care's revenue from each lawn covers all its costs, resulting in neither profit nor loss.

Exhibit 8-15 Short-Run Cost Curves for E-Z Care Lawn Mowing