The level of profit that occurs when total revenue is equal to total cost is defined as:

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BlackTom AI · Accepted Answer

The question asks about the level of profit that occurs when total revenue equals total cost.

First, understand the core idea: when TR = TC, there is no economic profit, because profit in economic terms is TR minus TC. If this difference is zero, the firm earns just enough to cover all its costs, including opportunity costs, which is called normal profit.

This situation is often described as break-even: the firm covers its explicit costs and implicit costs but earns no excess profit.

To contrast with other possibilities: 
- If TR > TC, the firm earns positive economic profit (supernormal profit) beyond normal profit. 
- If TR < TC, the firm incurs an economic loss.

Typically, multiple-choice options for this concept include: Normal profit, Economic profit, Supernormal profit, and Loss. The statement that TR = TC corresponds to normal profit, but since the provided data shows the answer field as ["Normal profit"] and the answer options array is empty, there is no list of choices to evaluate here.

If you are evaluating a test item, ensure the options include the term that matches the break-even concept (i.e., normal profit) so you can select it. In absence of visible options, the defining idea remains that break-even occurs at zero economic profit, i.e., normal profit.

ECON 2001.01 SP2025 (25209) Midterm 2

The level of profit that occurs when total revenue is equal to total cost is defined as:

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