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Such analysis permits the firm to determine at what level of operations it will break even (earn zero profit) and to discover the relationship among volume, costs, and profits. It helps the management that at present costs of products how many numbers of units must be sold to recover the cost of creating the product.
For Example: If you spend, $200 on creating a product and selling price is $20 then you must sale 10 units to recover the cost of product. It also helps the management to verify how much of units to be sold to get desired profit on product. For example: if in the above example you need to earn $20 profit then add it to its cost of $200 and it will become $220 now you require to earn profit of this $20 you require to sale 11 items of product.
the difference between the AC and the AVC curve
In the long run A. price and output levels are mutually dependent. B. the level of output depends on the price level. C. the level of output is independent of the price level.
Overnight target rates and inflation One of the major targets of every central bank is a low and stable inflation. Its main control variable is the overnight interest rate tar
An increase in growth rates will cause the production possibilities curve to a. shift inward. b. become steeper. c. become flatter. d. shift outward.
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