Question

If expected yield increases with no change in total cost, break-even price will:

Increase
Decrease
Remain constant
Initially decrease and then begin to increase

Answer 1

If expected yield increases with no change in total cost, break-even price will decrease.

Step-by-step explanation:

If expected yield increases with no change in total cost, break-even price will decrease. Break-even price is the price at which a company neither makes a profit nor incurs a loss. When expected yield increases, it means the company can produce a greater quantity of products without incurring any additional costs. As a result, the company can lower its price to attract more customers and still cover its costs, leading to a decrease in the break-even price.

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