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  • OC For Supply

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    Damao Zhidao
    8 views5 pages
    The document reviews the costs and revenues of three businesses: a bakery, construction work, and farming. The bakery has costs of $40,000 for capital, labor, land, and entrepreneurship to produce 50,000 units for a price of $1.85 each, generating a profit of $15,500. Construction work has costs of $2,100,000 to produce 10 units for a price of $200,000 each. Farming has costs of $125,000 for capital, land, and entrepreneurship to produce 1,000 units, and asks what price is needed to be profitable.

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    OC for supply

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    The document reviews the costs and revenues of three businesses: a bakery, construction work, and farming. The bakery has costs of $40,000 for capital, labor, land, and entrepreneurship to produce 50,000 units for a price of $1.85 each, generating a profit of $15,500. Construction work has costs of $2,100,000 to produce 10 units for a price of $200,000 each. Farming has costs of $125,000 for capital, land, and entrepreneurship to produce 1,000 units, and asks what price is needed to be profitable.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    8 views5 pages

    OC For Supply

    Uploaded by

    Damao Zhidao
    The document reviews the costs and revenues of three businesses: a bakery, construction work, and farming. The bakery has costs of $40,000 for capital, labor, land, and entrepreneurship to produce 50,000 units for a price of $1.85 each, generating a profit of $15,500. Construction work has costs of $2,100,000 to produce 10 units for a price of $200,000 each. Farming has costs of $125,000 for capital, land, and entrepreneurship to produce 1,000 units, and asks what price is needed to be profitable.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 5

    Supply Review

    G11 IB Economics
    Bakery

    • Cost of K=5,000
    • Cost of L=30,000
    • Cost of Land=5,000
    • Cost of Entrepreneur
    =30,000
    • Number of
    units=50,000
    • Current price = 1.85

    Profit=15,500
    Construction work

    • Cost of K=1,000,000
    • Cost of L=1,000,000
    • Cost of Land = 10,000
    • Cost of
    Entrepreneurship=100,000
    • Number of units=10
    • Current price = 200,000
    Banks give you 10% of interest rates
    Farming

    • Cost of K=10,000
    • Cost of L=0
    • Cost of Land=100,000
    • Cost of
    Entrepreneurship=15,000
    • Number of units=1,000
    • What price do you need to
    produce?

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