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Critical Thinking 1 - Speech or Presentation Example

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From economic point of view, the difference between the two is that in economic profit, the profit or loss generated is computed arithmetically by taking revenue of sales subtracting opportunity cost of all inputs of a business. On the other side, business profit is calculated…
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Critical Thinking 1
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Critical Thinking 1

Download file to see previous pages... Economic profit is the estimate of a forgone good. In businesses, the normal profit is required business profit and not in economic profit.
If at all the interest on mortgage loan deduction were reduced or removed, then the homeowners will be hurt is a fallacy. Buyers will have to pay low prices. This because home owners get a deduction in tax which a renter paying the same amount will never get. The savings are forced every month in beginning of a mortgage. Owning property such as house is the only avenue for an ordinary person to employ leverage that not only create risk but also rewards. Persons who rent outwardly think they put extra in investments but when subjected to scrutiny it is a fallacy. A house is an asset that depreciates slowly as compared to other assets. The scenario only focuses on the percentage increase in houses but do not provide an argument what return on capital is.
If a sales manager happens to announce that a marketing program is being utilized to maximize sales, I would advocate for the program scaled down because the marginal revenue is equal to zero. When the sales are maximum, the marginal revenue is at zero. When now this happen, the marginal cost exceeds marginal revenue, this means that the marketing strategy is yielding too much. For the betterment of the outcome, the marginal revenue should be equal to marginal ...Download file to see next pagesRead More
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