-For the firm represented in this figure, total revenue equals total cost at:
A) 200 units of output.
B) 300 units of output.
C) zero units of output.
D) both zero units and 300 units of output.

Question

-For the firm represented in this figure, total revenue equals total cost at:
A) 200 units of output. 
B) 300 units of output. 
C) zero units of output. 
D) both zero units and 300 units of output.

Quizplus · Accepted Answer

Total revenue equals total cost at the points where the total revenue curve intersects the total cost curve. In the given options, this happens at zero units of output (where both are typically at zero for most firms) and again at 300 units of output, indicating the firm breaks even at these points.

-For the Firm Represented in This Figure, Total Revenue Equals