Question

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

Answer 1

When the level of output leads to sales revenue that covers the fixed and variable costs, this is called the Breakeven Point.

What happens at the Breakeven point?

This is the point where the company has sold enough units to make back its variable and fixed costs.

At this point, the company would be making $0 profits which is also considered in business to be the normal profit.

Find out more on normal profits at brainly.com/question/3522161.

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