Which of the following best describes a firm that operates at the unit elastic point of the demand curve?

A firm operating at the unit elastic point of the demand curve is characterized by a specific relationship between price and quantity demanded, where the percentage change in quantity demanded equals the percentage change in price. In this scenario, total revenue remains constant with changes in price.

When the demand is unit elastic, any increase in price will lead to a proportional decrease in quantity demanded, keeping total revenue unchanged. Conversely, a decrease in price results in an equal proportional increase in quantity demanded, again leaving total revenue stable. This characteristic is crucial for firms, as it indicates a point where the price elasticity of demand is exactly -1.

Thus, when a firm operates at this unit elastic point, it effectively maximizes its total revenue, making this the best description of such a firm's behavior. Other options like minimizing costs or maximizing consumer surplus do not directly pertain to the specific elasticity and revenue generation dynamics at play in this scenario.