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12 Q13 A fast growing firm is producing 3500 loaves of banana bread daily. Assume that the least- cost combination of resources in producing those
12 Q13 A fast growing firm is producing 3500 loaves of banana bread daily. Assume that the least- cost combination of resources in producing those loaves is 22 units of labour, 25 units of land, 24 units of capital, and 35 unit of entrepreneurial ability, selling at prices of $40, $45, $60, and $75, respectively. Firm sells these 35000 loaves at $7 per unit. Based on the given information, answer the questions given below. 9 marks Total revenue = Price * Quantity Cost of labour: Cost of land: Cost of capital: Cost of entrepreneurship: Total cost: Profit or loss: Will it continue to produce banana bread? Why? If this firm's situation is typical for the other makers of banana bread, will resources flow toward or away from this bakery good
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