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 send off of output the additional cost letred by the holdr to produce one extra unit of output will be greater than the price at which the product is being throw in the market and hence he will father a loss . In case he produces nether that level of output , he can earn meshwork but it will be less than the maximum prize that he could earnQ2 . The advantage of such a budgetary policy policy is that the federal government is trying to pull the US sparing out of its recessionary period and invest in their cause prudence because of which they argon espousal money .

The chief(prenominal) 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 monetary shortage is going to be enormous and even if the economy is pulled out of the recession , it will be in grand debtsQ3 . explanation get ahead (Sales tax - all costs pretermit the cost of blondness 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 atomic number 18 maximized . IRS simply care about accounting profits as the taxes are calculated on accountin g...If you want to get a sound essay, order! it on our website: BestEssayCheap.com

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