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Business, 01.11.2019 04:31 Andinojose

Consider a firm that uses capital and labor as inputs and sells 20 comma 000 units of output per year at the going market price of $15. also assume that total labor costs to the firm are $250 comma 500 annually. assume further that the total capital stock of the firm is currently worth $400 comma 000, that the return available to investors with comparable risks is 9 percent annually, and that there is no depreciation. is this a profitable firm? explain your answer. a. the firm is not profitable because profit equals $-348,500 b. the firm is profitable because profit equals $51,500. c. the firm is profitable because profit equals $27,500. d. the firm is not profitable because profit equals $27,500. e. the firm is profitable because profit equals $300,000

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