Identify break-even point from the following diagram :

1.	Identify break-even point from the following diagram :
Answer» <html><body><p></p>Solution :Break-even point <a href="https://interviewquestions.tuteehub.com/tag/refers-1181652" style="font-weight:bold;" target="_blank" title="Click to know more about REFERS">REFERS</a> to the <a href="https://interviewquestions.tuteehub.com/tag/situation-1210683" style="font-weight:bold;" target="_blank" title="Click to know more about SITUATION">SITUATION</a> in which a firm is able to <a href="https://interviewquestions.tuteehub.com/tag/recover-613729" style="font-weight:bold;" target="_blank" title="Click to know more about RECOVER">RECOVER</a> all its costs. In other words it is a situation of normal profits ( A situation of No Profit - No Loss ). In the above figure point 'E' refers to Break-even point. If a firm operates to the left of point 'E' it is enjoying super-normal profits (TR gt TC). <br/> (Also break-even point can be determined from equality between AR and AC. Refer to section 8.3 <a href="https://interviewquestions.tuteehub.com/tag/specific-1220917" style="font-weight:bold;" target="_blank" title="Click to know more about SPECIFIC">SPECIFIC</a> analysis : (1) Normal profits)</body></html>

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