With current technology, suppose a firm is producing 400 loaves of banana bread daily. Also assume that the least-cost combination of resources for producing those loaves is 5 units of labor, 7 units of land, 2 units of capital, and 1 unit of entrepreneurial ability, selling at prices of $40, $60, $60, and $20, respectively. Assume the firm can sell these 400 loaves at $2 per unit. Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. What is the firm's total revenue? 2$ What is its total cost? 2$ Calculate the amount of economic profit or loss. 2$ Will it continue to produce banana bread? (Click to select) ♥ If this firm's situation is typical for the other makers of banana bread, will resources flow toward or away from this bakery good? (Click to select) ♥

With current technology, suppose a firm is producing 400 loaves of banana bread daily. Also assume that the least-cost combination of resources for producing those loaves is 5 units of labor, 7 units of land, 2 units of capital, and 1 unit of entrepreneurial ability, selling at prices of $40, $60, $60, and $20, respectively. Assume the firm can sell these 400 loaves at $2 per unit. Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. What is the firm's total revenue? 2$ What is its total cost? 2$ Calculate the amount of economic profit or loss. 2$ Will it continue to produce banana bread? (Click to select) ♥ If this firm's situation is typical for the other makers of banana bread, will resources flow toward or away from this bakery good? (Click to select) ♥

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter14: Transaction Costs, Asymmetric Information, And Behavioral Economics

Section: Chapter Questions

Problem 1.3P

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