1)a)What is the term for the level of output at which the sales revenue of the f
ID: 1152564 • Letter: 1
Question
1)a)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?
Capacity output.
Explicit output.
Break-even output.
Average output.
b)
What is the term for the extra revenue derived from the sale of one more unit?
Average revenue.
Marginal revenue.
Net revenue.
Total revenue.
Capacity output.
Explicit output.
Break-even output.
Average output.
b)
What is the term for the extra revenue derived from the sale of one more unit?
Average revenue.
Marginal revenue.
Net revenue.
Total revenue.
Explanation / Answer
Q1-a: Answer is Break even output. Break even output is a output which covers all the cost i.e. explicit and implicit cost Q1-b: Answer is Marginal revenue Marginal revenue is an additional revenue earned for selling additional unit of output
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