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Nadusha1986 [10]
4 years ago
8

With current technology, suppose a firm is producing 400 loaves of banana bread daily. Also assume that the least-cost combinati

on of resources in producing those loaves is 6 units of labor, 8 units of land, 2 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 400 loaves at $2 per unit. 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
Business
1 answer:
vovikov84 [41]4 years ago
6 0

Answer:

Total revenue= -$60

Explanation:

<u>First, we need to determine the total cost of producing 400 loaves:</u>

Total cost= 6*40 + 8*60 + 2*60 + 1*20

Total cost= $860

<u>Now, we can calculate the total revenue:</u>

Total revenue= total income - total cost

Total revenue= 400*2 - 860

Total revenue= -$60

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