#8 If a perfectly competitive dairy farmer takes her marginal cost, average cost, marginal revenue and price and plots these curves out on a graph, where is her business break-even point on the graph?

1. Where the price intersects the marginal cost below the average cost curve
2. Where the price intersects that marginal cost above the average cost curve
3. Where the price intersects the marginal cost at the minimum point of the average cost curve