When a firm is operating at peak efficiency it is at the

Question

Quizplus · Accepted Answer

The break-even point is reached when a firm's revenue equals its total costs (both fixed and variable). This means that the firm is operating neither at a loss nor making a profit. Therefore, if the firm is operating at peak efficiency, it would be at the break-even point as it is generating maximum output while keeping its costs at a minimum. The shutdown point is the level of output at which the firm incurs losses that are greater than its fixed costs, and hence it is not a relevant choice in this scenario.

When a Firm Is Operating at Peak Efficiency It Is