The break-even point at which a minimum profit helps set price and thus, determines the shape of supply curve which shows the quantities of product supplied.
The supply curve are drawn as a slope which rises upward from the left to right because the product price and quantity supplied are directly related.
Law of supply states that the higher the price of goods, the higher the quantity supplied to sellers.
The price of the supplied goods is based on factors of production and relies on break-even point to make profit.
Therefore, the option D. is correct because the shape of the supply curve shows the quantities of product supplied on the basis the break-even point at which a minimum profit is made.
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