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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 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 per unit, respectively.
If the firm can sell these 800 units at $1 per unit, will it continue to produce banana bread?
What is the firm's total revenue?
What is the firm's total cost?
What is the firm's profit or loss?
Instructions: Enter a profit as a positive number and a loss as a negative number; include a negative sign (-) if necessary.
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