A) Recover only operating cost
B) Earn a normal profit
C) Wipe out earlier losses
D) Recover total costs
Correct Answer: D
Solution :
The quantity of output in which the total revenue is equal to total cost such that a firm earns exactly a normal profit, but no economic profit, is known as Breakeven Output. A firm generally reports a positive accounting profit at the breakeven level of production. It represents the sales amount required to cover total costs (both fixed and variable).
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