Microeconomics: Principles, Problems, & Policies, 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0077660811
ISBN 13: 978-0-07766-081-9

Chapter 2 - The Market System and the Circular Flow - Problems - Page 51: 3

Answer

Yes. It should be able to make further banana bread.

Work Step by Step

The Total Revenue= $400 \times $2 $ =$800 So Cost of Making Banana Bread: $5 \times $40 + $7 \times $ 60 + $2 \times 60 $+ $1 \times $20 $ =$200 + $420 + $120 + $20 =$ 760 So the Profit will be = Revenue - Cost =$ 800 - $ 760 =$ 40 Yes. It should be able to make further banana bread.
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