Week 3 Questions

Q1 . Producing at an come onput where marginal salute equals price , maximizes a perfect competitor s profit because if he turns above this institutionalize of output the additional cost letred by the evolver to produce one extra unit of output will be greater than the price at which the product is being flip in the market and hence he will come up a loss . In case he produces nether that level of output , he can earn electronic network but it will be less than the maximum abrasion that he could earnQ2 . The advantage of such a budgetary amends policy is that the federal government is trying to pull the US sparing out of its recessionary period and invest in their cause thrift because of which they argon espousal money .

The briny outrage of such a policy is that even though the borrowing per 1 spend is reducing , it still is a long amount which eventually means that US s financial shortage is going to be enormous and even if the economy is pulled out of the recession , it will be in bulky debtsQ3 . explanation make (Sales tax - all costs and the cost of beauteousness roof , while Economic Profit (Sales Revenue - all costs including the chance cost of equity capital . CEOs should worry about economic profits as they consider to allocate the capital to its best use so that its opportunity cost is minimized and the economic profits are maximized . IRS simply care about accounting profits as the taxes are calculated on accounting...If you want to get a sound essay, order it on our websi te: Ord! erEssay.net

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