Final answer:
The break-even point is where a firm starts making sufficient revenue to cover its costs, which in this example occurs at 10 units of output.
Step-by-step explanation:
Suppose a firm starts making a positive total revenue above 10 units of output. Here, 10 units of output is referred to as the break-even point. the break-even point is the level of output where the firm's total revenue equals its total costs. at this point, the marginal cost curve intersects the average cost curve at the minimum point of average cost (AC), indicating the firm is earning zero economic profits. it is an important threshold for businesses because it signifies the minimum amount of product they must sell to cover their costs. Beyond this point, the firm begins to make a profit on additional units sold.