The break-even point (BEP) is the point at which cost or expenses and revenue are equal: there is no net loss or gain, and one has "broken even." For businesses, reaching the break-even point is the first major step towards profitability.

Correct Option: D

The break-even point (BEP) is the point at which cost or expenses and revenue are equal: there is no net loss or gain, and one has "broken even." For businesses, reaching the break-even point is the first major step towards profitability.

The situation when a firm is operating at loss in the short period in perfect competition arises when the price is so low that total revenue is not even enough to cover the variable cost of production. Shut down point is that point at which the price is equal to average variable costs or the firm covers its variable costs. So it should operate as long as it covers even the variable costs.

Correct Option: C

The situation when a firm is operating at loss in the short period in perfect competition arises when the price is so low that total revenue is not even enough to cover the variable cost of production. Shut down point is that point at which the price is equal to average variable costs or the firm covers its variable costs. So it should operate as long as it covers even the variable costs.

The demand for labour is “derived” from the production and demand for the product being demanded. If the demand for the product increases, either the price will increase or the demand for production labour will increase until the equilibrium price and production numbers are met. Labour is “derived” from the market demand for the product.

Correct Option: C

The demand for labour is “derived” from the production and demand for the product being demanded. If the demand for the product increases, either the price will increase or the demand for production labour will increase until the equilibrium price and production numbers are met. Labour is “derived” from the market demand for the product.

The opportunity cost of a choice is the value of the best alternative forgone, in a situation in which a choice needs to be made between several mutually exclusive alternatives given limited resources. It is equivalent to what a factor could earn for the firm in alternative uses.

Correct Option: D

The opportunity cost of a choice is the value of the best alternative forgone, in a situation in which a choice needs to be made between several mutually exclusive alternatives given limited resources. It is equivalent to what a factor could earn for the firm in alternative uses.

A negative income elasticity of demand is associated with inferior goods. The Giffen good is an unusual type of inferior good which has positive price elasticity of demand. It is a good which people paradoxically consume more of as the price rises, violating the law of demand. When price goes up, the quantity demanded also goes up.

Correct Option: A

A negative income elasticity of demand is associated with inferior goods. The Giffen good is an unusual type of inferior good which has positive price elasticity of demand. It is a good which people paradoxically consume more of as the price rises, violating the law of demand. When price goes up, the quantity demanded also goes up.