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smitch6 smitch6
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6 years ago
Pamela's bakery produces 500 loaves of bread in a given year. Pamela pays $100 for flour and yeast, pays $600 in wages, pays $50 in interest on an existing loan, and pays $100 in taxes to the government. One of Pamela's bread slicing machines, which cost $75 each, wears out over the course of the year and must be scrapped. Pamela's profit for the year equals $75. Pamela's bread, therefore, sells for
A) $0.50 per loaf.
B) $1.00 per loaf.
C) $2.00 per loaf.
D) $1.50 per loaf.
E) cannot tell, insufficient information.
Textbook 
Macroeconomics, Canadian Edition

Macroeconomics, Canadian Edition


Edition: 5th
Author:
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Blade73Blade73
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6 years ago
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