Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

with current technology suppose a firm id producing 400 loaves of banana bread d

ID: 1150400 • Letter: W

Question

with current technology suppose a firm id producing 400 loaves of banana bread daily TUR I8de : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Yelp With current technology, suppose a firm is producing 400 loaves of banana bread oda resources in producing those loaves is 6 units of labor, 7 units of land, 2 units of capital, and 1 unit of entrepreneurial ability, seling at prices of $40, $60, $60. and $20, respectively. Assume the firm can sell these 400 loaves at $2 per unit. that the least-cost combination of Instructions: Enter your answers as whole numbers. If you are entering any negative numbers be sure to include a negative sign in front of those numbers. a. What is the firm's total revenue? Answer is complete and correct 800 b. What is its total cost? 8 Answer is complete but not entirely correct. 840 c.Calculate the amount of economic profit or loss. &Answer; is complete but not entirely correct. Next >

Explanation / Answer

b. Total Cost: 6 x $40+ 7 x $60 + 2 x $60 + 1 x $20 = $240 + $420 + $120 + $20 = $800

c. Economic Profit or Loss: Zero Economic profit / loss. This is so because, Total cost is $800 and Total revenue is $800 (400 x $2).