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

The main 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 fiscal shortage is going to be enormous and even if the economy is pulled out of the recession , it will be in vast debtsQ3 . explanation Profit (Sales tax - all costs except the cost of equity 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 website: Orderessay

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