Identify the incorrect statement –

Correct option is B

The correct answer is (B) Break even point occurs when marginal revenue is equal to marginal cost

Explanation:
• The Break-Even Point (BEP) is actually the level of production where total revenue equals total costs (TR = TC), resulting in zero profit.
• The condition where Marginal Revenue (MR) equals Marginal Cost (MC) is the Profit Maximization rule, not the break-even rule.
• At the profit-maximizing point (MR=MC), the firm determines the quantity of output that provides the highest possible profit or the lowest possible loss.
• In a perfectly competitive market, the break-even point occurs where the Price (or Average Revenue) equals the Average Total Cost (P = ATC).
• Therefore, statement B is fundamentally incorrect in economic theory.

Information Booster:
• The Shut-down point (Option C) is critical because if the price falls below the Average Variable Cost (AVC), the firm cannot even cover its operating expenses, making it better to stop production entirely.

Additional Knowledge:
• Industry definition (Option A): In economics, an industry is indeed defined as a collection of individual firms producing similar or identical goods.
• Shut down point (Option C): It is correctly defined as the point where the firm covers only its variable costs; any price below this leads to immediate closure.
• Market power/Segmentation (Option D): While segmentation is technically dividing a market, it is used by firms with market power to affect prices; however, usually, 'Market Power' is the term for affecting prices. In the context of this question, D is often treated as a characteristic of non-competitive markets.