Question
Hi, I have a question that I don't understand and it is : how to solve this question and how is banana bread related to
Hi, I have a question that I don't understand and it is : how to solve this question and how is banana bread related to it?
With current technology, suppose a firm is producing 500 loaves of white bread daily. Also assume that the least-cost combination of resources in producing those loaves is 5 units of labor, 2 units of land, 4 units of capital, and 1 unit of entrepreneurial ability. Assume each factor costs: $40, $50, $60, and $30 respectively. If the firm can sell these 500 loaves at $2 per unit, what is its total revenue? Its total cost? Its profit or loss? Will it continue to produce banana bread? If this firm's situation is typical for the other makers of white bread, will resources flow toward or away from this bakery good market?
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