With current technology, suppose a firm is producing 800 loaves of banana bread daily. Also assume that the least-cost combination of resources for producing those loaves is 5 units of labor, 5 units of land, 4 units of capital, and 1 unit 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.

Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (−) in front of those numbers.

What is the firm's total revenue?

$  is the CORRECT answer

What is its total cost?

$  this answer is INCORRECT. What's the correct answer?

Calculate the amount of economic profit or loss.

$  this answer is INCORRECT. What's the correct answer?

Will it continue to produce banana bread?
Answer: ?

If this firm's situation is typical for the other makers of banana bread, will resources flow toward or away from this bakery good? Answer: ?

Answer rating: 100% (QA)

Lets calculate the firms total revenue total cost and economic profit correctly Total Revenue Total ... View the full answer