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Q: The point on the supply curve at which a firm earns only normal profit is called the ..............
  • A. break-even point
  • B. break-through point
  • C. exit point
  • D. income point
Correct Answer: Option A - The point on the supply curve at which a firm earns only normal profit is known as 'Breakeven point'. The breakeven point is the point at which total cost and total revenue are equal. Breakeven for a firm occurs when it is able to cover all its cost of production.
A. The point on the supply curve at which a firm earns only normal profit is known as 'Breakeven point'. The breakeven point is the point at which total cost and total revenue are equal. Breakeven for a firm occurs when it is able to cover all its cost of production.

Explanations:

The point on the supply curve at which a firm earns only normal profit is known as 'Breakeven point'. The breakeven point is the point at which total cost and total revenue are equal. Breakeven for a firm occurs when it is able to cover all its cost of production.