What is the point of equilibrium?
a. It is the point where the investment is recovered.
b. It is the point where the company starts to make a pro...
What is the point of equilibrium?
a. It is the point where the investment is recovered. b. It is the point where the company starts to make a profit. c. It is the point where the costs and revenues are equal.
The correct answer is c. It is the point where the costs and revenues are equal. The equilibrium point represents a balance between the costs incurred by a company and the revenues generated. At this point, there is neither profit nor loss, and the company is operating at a break-even point.
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