Final answer:
True, a lower break-even point is typically desirable for businesses as it implies less revenue needed to cover costs, allowing a firm to reach profitability more quickly.
Step-by-step explanation:
A lower break-even point is generally desirable for a business because it means the firm needs to generate a lower amount of revenue to cover its costs. When a firm's price exceeds its average variable cost, it is better for the firm to continue operating, even if it is below the break-even point where price equals average cost. This is because operating at a loss may still be preferable to shutting down, if the losses from continuing to operate are less than the losses from shutting down entirely. When a firm cannot cover its total costs, a profit-maximizing firm will attempt to minimize losses by producing at a quantity where total revenues come closest to total costs.
Complete Question:
A lower break even point is always desirable from the business. True/False