At a firm's break- even point, its

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Quizplus · Accepted Answer

At a firm's break-even point, its total revenue equals its total costs (including both fixed and variable costs), not specifically its total opportunity cost. However, since total costs can be considered as the opportunity cost of production (the cost of not pursuing the next best alternative), D is the closest correct option given the choices. Options A, B, and C are incorrect because at the break-even point, marginal revenue equals marginal cost (not mentioned), and neither average fixed cost nor average variable cost specifically equate to marginal revenue at this point.

At a Firm's Break- Even Point, Its