Can someone help with Economics homework?

Question

With current technology, suppose a firm is producing 400 loaves of banana bread daily. Also assume that the least-cost combination of resources in producing those loaves is 5 units of labor, 7 units of land, 2 units of capital, and 1 unit of entrepreneurial ability, selling prices at prices of $40,$60, and $40, respectively. If the firm can sell those 400 loaves at $2 per unit, will it continue to produce banana bread? If this firm's situation is typical for the other makers of banana bread, will resources flow to or away from this bakery good?

Answer 1

You have 4 units but only 3 prices.

You have to multiply the number of units of each by its cost then sum these values. if this is more than $800 the firm will exit the industry in the Longrun, if it is equal to or less than $800 the firm will remain in the industry.

If it is more than $800 resources will flow out of the sector

If it is less than $800 resources will flow into the sector

If it is equal to $800 resources will flow neither in nor out of the sector

Hope this helps