The answer is "Break-even output decreases."

Here's why:

1. The break-even point is the point at which total revenue equals total costs. At this point, a business is not making a profit or a loss.

2. If the sales price increases and the cost function remains unchanged, the company will generate more revenue per unit sold.

3. This means that the company will need to sell fewer units to cover its costs and reach the break-even point.

4. Therefore, when the sales price increases and the costs function remains unchanged, the break-even output decreases.

The other options are incorrect. The break-even output does not remain the same or increase, and total fixed costs do not decrease simply because the sales price increases.

Question

The answer is "Break-even output decreases."

Here's why:

1. The break-even point is the point at which total revenue equals total costs. At this point, a business is not making a profit or a loss.

2. If the sales price increases and the cost function remains unchanged, the company will generate more revenue per unit sold.

3. This means that the company will need to sell fewer units to cover its costs and reach the break-even point.

4. Therefore, when the sales price increases and the costs function remains unchanged, the break-even output decreases.

The other options are incorrect. The break-even output does not remain the same or increase, and total fixed costs do not decrease simply because the sales price increases.

Knowee AI · Accepted Answer

The answer is "Break-even output decreases."

Here's why:

1. The break-even point is the point at which total revenue equals total costs. At this point, a business is not making a profit or a loss.

2. If the sales price increases and the cost function remains unchanged, the company will generate more revenue per unit sold.

3. This means that the company will need to sell fewer units to cover its costs and reach the break-even point.

4. Therefore, when the sales price increases and the costs function remains unchanged, the break-even output decreases.

The other options are incorrect. The break-even output does not remain the same or increase, and total fixed costs do not decrease simply because the sales price increases.

When the sales price increases and the costs function remains unchanged:Group of answer choicesBreak-even output decreases.Break-even output remains the same.Break-even output increases.Total fixed costs decrease.

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