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With current technology, suppose a firm is producing 120 cupcakes daily. Also assume that the least-cost combination of resources for producing those cupcakes is 2
With current technology, suppose a firm is producing 120 cupcakes daily. Also assume that the least-cost combination of resources for producing those cupcakes is 2 units of labor, 1 unit of land, 2 units of capital, and 3 units of entrepreneurial ability, selling at prices of $120, $30, $50, and $20, respectively. If the firm can sell these 120 cupcakes at $5 per unit, what is its total cost? Multiple Choice $220 $430 $8 $960
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