Final answer:
The correct answer is: The revenue from ticket sales begins to exceed total (fixed and variable) costs at the break-even point on a break-even chart.
Step-by-step explanation:
On a break-even chart, the break-even point is where the total revenue from ticket sales begins to exceed total costs, which includes both fixed and variable costs. It is not when costs associated with additional attendees exceeds revenue from ticket sales, nor is it just when revenue begins to exceed fixed costs. Specifically, the break-even point is defined as the point where the market price is exactly at the level where marginal cost (MC) crosses the average cost (AC), leading to the firm making zero profits. If the firm operates at a price higher than the break-even point, it earns profits since the price is greater than average cost.
If the price falls below the break-even point but above the shutdown-point price, the firm is making losses; however, it will continue to operate in the short run because it covers its variable costs. However, if the price sinks below the shutdown point, the firm will cease operations because it is unable to cover even its variable costs.