With current technology, suppose a firm is producing 400 loaves of banana bread daily. Also assume that the least-cost combination ofresources for producing those loaves is 6 units of labor, 7 units of land, 2 units of capital, and 1 unit of entrepreneurial ability, selling atprices of $40, $60, $60, and $20, respectively. Assume the firm can sell these 400 loaves at $2 per unit.Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) infront of those numbers.What is the firm's total revenue?$What is its total cost?$Calculate the amount of economic profit or loss.$Will it continue to produce banana bread?|(Click to select) VIf 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) V

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esources for producing those loaves is 6 units of labor, 7 rices of $40, $60, $60, and $20, respectively. Assume t structions: Enter your answers as a whole number. If yo ont of th ose numbers aumbers

esources for producing those loaves is 6 units of labor, 7 rices of $40, $60, $60, and $20, respectively. Assume t structions: Enter your answers as a whole number. If yo ont of th ose numbers aumbers

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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 6 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?
$
What is its total cost?
$
Calculate the amount of economic profit or loss.
$
Will it continue to produce banana bread?
|(Click to select) V
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) V

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