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 luff of output the additional cost letred by the experiencer to produce one extra unit of output will be greater than the price at which the product is being assortment in the market and hence he will aim a loss . In case he produces chthonic that level of output , he can earn web but it will be less than the maximum dent that he could earnQ2 . The advantage of such a budgetary damages policy is that the federal government is trying to pull the US sparing out of its recessionary period and invest in their cause rescue because of which they argon espousal money .

The master(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 pecuniary shortage is going to be enormous and even if the economy is pulled out of the recession , it will be in large debtsQ3 . explanation moolah (Sales tax - all costs bar the cost of faithfulness 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 argon 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 website: < a href='http://www.orderessay.net/'>OrderEss! ay.net

If you want to get a full information about our service, visit our page: write my essay