What term describes the point at which the number of units sold generates enough revenue to equal total costs?

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BlackTom AI · Accepted Answer

The question asks for the term describing the point where total revenue from units sold equals total costs, i.e., where profit is zero.
Option 1: Value. This term typically refers to the perceived worth or usefulness of a product to a customer, not the breakeven concept. It does not describe the relationship between revenue and costs.
Option 2: Price elasticity point. Price elasticity measures how quantity demanded responds to price changes, not the specific revenue-cost balance at zero profit. Therefore this term does not capture the break-even threshold.
Option 3: Break-even analysis. Break-even analysis is the broader method used to determine various financial metrics, including the break-even point, but on its own it describes the analytical approach rather than the exact threshold where revenue equals costs. It’s a stepping stone concept rather than the precise term for the crossing point.
Option 4: Break-even point. This is the standard term for the exact moment when total revenue equals total costs, resulting in zero profit, which directly answers the question.

What term describes the point at which the number of units sold generates enough revenue to equal total costs?

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