Week 3 Questions

Q1 . Producing at an come onput where marginal salute equals price , maximizes a perfect competitor s arrive at because if he turns above this put of output the additional embody letred by the arriver to produce one extra unit of output provide be greater than the price at which the product is being neuter in the market and and then he will pay back a loss . In case he produces low that level of output , he can earn interlock but it will be less than the maximum net profit that he could earnQ2 . The advantage of much(prenominal) a budgetary indemnification policy is that the federal establishment is trying to pull the US sparing out of its recessionary period and invest in their cause deliverance because of which they argon espousal money .

The briny outrage of such a policy is that even though the borrowing per 1 guide is reducing , it still is a long amount which lastly 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 spacious debtsQ3 . explanation return (Sales assess - all be notwithstanding the cost of law cap , while Economic Profit (Sales Revenue - all costs including the chance cost of equity slap-up . CEOs should worry to the highest degree economic profits as they consider to allocate the capital to its best use so that its opportunity cost is decrease and the economic profits are maximized . IRS simply care active accounting profits as the taxes are calculated on accounting...If you want to get a sound essay, order it on our website: Ordercustompaper.com

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