With current technology, suppose a firm is producing 500 cookies daily. also assume that the least-cost combination of resources for producing those cookies is 2 units of labor, 1 unit of land, 2 units of capital, and 3 units of entrepreneurial ability, selling at prices of $120, $30, $50, and $20, respectively. if the firm can sell these 500 cookies at $2 per unit, what is its total profit or loss? will it continue to produce cookies?
a. Total profit is $480 and yes, the firm will continue to produce cookies.
b. Total profit is $600 and yes, the firm will continue to produce cookies.
c. Total profit is $570 and yes, the firm will continue to produce cookies.
d. Total loss is -$480 and no, the firm will not continue to produce cookies.