Draw consumption curve and saving curve in a single diagram and mark the break-even point. ?
Now what are break-even points on C and S curves ?? I know with TR and TC that break even points are points where TR=TC and there is neither profit nor loss.
Reply as soon as possible.
In the upper panel of the diagram, CC represents the consumption curve. 45° line is the line representing aggregate supply (Y). In the lower panel, SS represents the saving curve. At point A, the 45° line intersects the consumption curve i.e. at point A, Income = Consumption. This implies that whole income is spent on consumption, therefore, saving is zero. This point is known as break-even point. Corresponding to point A, the point B in the lower panel represents zero level of savings (S = 0). Thus, we can say that at the break-even point, the economy is consuming all what it is earning and there are no saving.
As you mentioned that break-even points in terms of TR-TC approach implies the particular points where TR equals TC and there exists neither any profits or any losses. Similarly, in macroeconomics, the break-even points in terms of consumption and saving implies a situation, where consumption equals income and there exists neither any positive saving nor any negative savings (in form of past borrowings).