Image (8).jpg - 2 1 Stay as manager = $50 000 year 2 Organic soap company = $70,000 year(465K 395k 3 Intemet competitor =25,000 year(3 275 mil 3.25 mil

Image (8).jpg - 2 1 Stay as manager = $50 000 year 2...

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Unformatted text preview: 2 ) 1 : Stay as manager = $50, 000 / year 2: Organic soap company = $70,000 / year (465K - 395k) 3 : Intemet competitor =25,000 / year (3. 275 mil - 3.25 mil a . She should quit her job as manager and pursue an entrepreneurial opportunity b. She should stent the organic soap company, because the erevenue she can generate per year minus the production costs exceeds her current wage at the cable TV company ( $70 , 90 0 7 $5 0,200) Factors Units per unit $ cost ( total ) Land 7 $60 $ 420 Labor 5 $ 40 $200 Capital 2 3 60 $120 Entrepreneurial - $ 20 + $ 20 production cost = $760 totell revenue = 400 x52 = $8001 profit = $800- 8760 = 540 The loaf form will continue to produce since it is earning aprofit . If this frim's situation is typical for other banana bread makers , resources will flow toward this bakery good ....
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  • Fall '19
  • Production cost, Labor theory of value, $50, Cost-of-production theory of value, $60

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