Suppose managers at Mahindra have determined the costs associated with producing hay balers are equal to the price that they charge for the hay balers. This indicates that Mahindra 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

The breakeven point is when the cost of producing a good or service is equal to the revenue generated from selling it. In this scenario, Mahindra is charging a price equal to their production costs, indicating that they are not making a profit but are also not incurring any losses, making it a breakeven point. Therefore, option A is the correct answer.

Suppose Managers at Mahindra Have Determined the Costs Associated with Producing