Final answer:
C. equal to zero.
At the break-even point, a firm's profits are equal to zero. This occurs when the market price is exactly at the level where the firm's marginal cost curve crosses its average cost curve, meaning the firm is not making a profit or a loss.
Step-by-step explanation:
At the break-even point, a firm's profits are equal to zero. This point is determined by examining where the marginal cost (MC) curve intersects with the average cost (AC) curve. If a firm's operating market price is higher than the break-even point, it earns profits. However, if the price is exactly at the break-even point, the firm makes no profits. Losing money occurs when the price is within the zone between the shutdown point and the break-even point, but the firm will still operate in the short run if it covers its variable costs. If the price falls below the shutdown point, the firm ceases operations immediately, as it isn't even covering its variable costs.