Final answer:
Break-even analysis is true for determining the units sold to break even, and sellers may sell below the equilibrium price due to various market strategies or conditions.
Step-by-step explanation:
The statement that break-even analysis is used to determine how many units must be sold to break even at a particular selling price is true. Break-even analysis is a critical financial calculation that helps businesses understand when they will start to make a profit. It involves determining the point at which total revenues equal total costs, which means no profit or loss is incurred – the break-even point. When a business's selling price is above its average variable cost but below the average total cost, it operates at a loss. However, as long as the price covers the average variable cost, it might still be preferable to remain open to minimize losses, as opposed to shutting down. Similarly, some sellers in the goods market may be willing to sell items at a price lower than the equilibrium price due to various reasons like inventory clearance, attracting customers, or out of necessity if the market price has fallen.
The false statement, "In the goods market, no seller would be willing to sell for less than the equilibrium price," ignores instances like market entry strategies, financial distress, or stock clearance that may cause sellers to price goods below equilibrium.