What is the term for the level of output at which the sales revenue of the firm just covers the fixed and variable costs including normal profits?

Question

Quizplus · Accepted Answer

The term for the level of output at which the sales revenue of the firm just covers the fixed and variable costs including normal profits is called the break-even output. At this point, there is neither a profit nor a loss, and the firm is said to have reached its break-even point. Choice A, capacity output, refers to the maximum amount a firm can produce with its available resources. Choice B, explicit output, is not a commonly used term in economics or business. Choice D, average output, refers to the total output divided by the number of units produced, and is not directly related to the break-even point.

What Is the Term for the Level of Output at Which