Question

A company is currently producing 100 chairs per day. Assume the market currently tells us that the least-cost combination of resources to produce 100 chairs is the following Labor Land 8 units Entrepreneurial ability Now assume the company sells 100 chairs at $5 per unit, and then answer the following questions: Instructions: Enter your answers as whole numbers

a. What is the company's total revenue?
b. What is the company's total cost?

Answer 1

Answer:

The concluding part of the question is as follows:

Labour      10units      $10 per unit

Land          5units        $20 per unit

Capital       8units        $20 per unit

Entrepreneurial ability 2units $ 10per unit

Total revenue=$5*100=$500

Total costs=$380

Explanation:

Total revenue =Price*quantity

Total costs =costs from all factors of production

Labour 10*$10=$100

Land=5*$20=$100

Capital 8*$20=$160

Entrepreneurial ability=2*$10=$20

Total costs=$100+$100+&160+$20

                  =$380

Answer 2

a. The company's total revenue is $500

b. The company's total cost is $380

a. Total revenue=Price×Quantity

Let plug in the formula

Total revenue=$5×100

Total revenue=$500

b. Total costs=Labour +Land + Capital+Entrepreneurial ability

Where:

Labour= 10×$10

Labour =$100

Land=5×$20

Land=$100

Capital= 8×$20

Capital=$160

Entrepreneurial ability=2×$10

Entrepreneurial ability=$20

Let plug in the formula

Total costs=$100+$100+&160+$20

Total costs=$380

Inconclusion The company's total revenue is $500 and The company's total cost is $380.

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