With current technology, suppose a firm is producing 800 loaves of banana bread daily.
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With current technology, suppose a firm is producing 800 loaves of banana bread

daily. Also assume that the least-cost combination of resources in producing those loaves is 6 units of labor, 5 units of land, 4 units of capital, and 2 units of entrepreneurial ability, selling at prices of $40, $60, $60, and $20, respectively. Assume the firm can sell these 800 loaves at $1 per unit.

Top Answer

profit of firm = total revenue... View the full answer

IMG_20190612_220016.jpg

Price
of output = $ 1
Quantity
800
TC = 40 ( 6 ) + 60 ( 5 ) + 60 ( 4 ) + 20 ( 2 )
TC = 240 + 300 + 240 + 40 = 820
TR = P. Q = 1 ( 800 ) : 800
Proyit
firm = Total Revenue
- Toted cost
- -
TR - IC...

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