Suppose managers at Caterpillar have determined the costs associated with producing hay balers are equal to the price that they charge for the hay balers. This indicates that Caterpillar is producing at the ____ point.
A) breakeven
B) marginal revenue less than marginal cost
C) profit margin
D) competitive price
E) profit maximizing

Question

Quizplus · Accepted Answer

Breakeven point is when the total cost equals the total revenue, implying zero profit. Hence, if the cost of producing hay balers is equal to the price charged for them, Caterpillar is producing at the breakeven point.

Suppose Managers at Caterpillar Have Determined the Costs Associated with Producing