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) ♥
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 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 $2 per unit.
Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in
front of those numbers.
What is the firm's total revenue?
What is its total cost?
2$
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) ♥](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb3e91b52-2798-4b6b-9b13-b60ccdf63f78%2Faf819363-f988-4064-aa94-194305a3b8c8%2F411819_processed.png&w=3840&q=75)
Transcribed Image Text: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 $2 per unit.
Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in
front of those numbers.
What is the firm's total revenue?
What is its total cost?
2$
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) ♥
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