A firm reaches a break-even point (normal profit position) where

A) marginal revenue cuts the horizontal axis.
B) marginal cost intersects the average variable cost curve.
C) total revenue equals total variable cost.
D) total revenue and total cost are equal.

Break-even Point

The point at which total costs and total revenues are equal, meaning that a business, project, or investment is neither making a loss nor a profit.

Normal Profit

The minimum profit necessary for a company to remain competitive in the market; it corresponds to the opportunity cost of capital.