Which of the following statements is true about break-even analysis?
A. It considers the effect of price on the quantity that consumers will want.
B. It reveals the price that will earn the highest profit.
C. It assumes that the demand curve is perfectly horizontal at the selling price.
D. It helps to compute the break-even point in units alone.
E. It cannot be used for comparing several different alternatives (for example, assuming different prices).
Answer: C
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Answer the following statement true (T) or false (F)