MicroL4 Essay Example | Topics and Well Written Essays - 1000 words

MicroL4 - Essay Example Higher education has proved to be beneficial in voting matters also. Education is an asset. It has provided benefits like self awareness, ability to think wisely and critically, having the ability to meet different people, which are less tangible and will help a child to grow up being a better individual. However, there are certain costs that have to be incurred for going to college. The opportunity costs of going to college include several components. First, the opportunity cost of one going to college includes the money that he or she would have earned instead of attending classes. It also includes the amount of wages that were foregone by not doing work and just attending college. In opting for going to college, one has also lost the opportunity to build up a career and the associated income that could be earned instead of not going to college. The greatest opportunity cost of going to college is the wage income that the individual has to forgone for attending classes. 2. The marg in is considered to be a very significant concept in the area of business and economics. In economics the concept of margin is related to a wide range of topics including utility, revenue, costs, profit, product, etc. We are quite familiar with the terms of marginal utility, marginal revenue, marginal costs, marginal profit, marginal product and so on. The term margin mainly stands for the difference in the value of a variable when one additional unit of some other variable is used. For example, marginal utility of a product refers to the increase or decrease in total utility of an individual due to one unit increase in the consumption of the product. The concept of margin is very essential in economic decision making. The level of p of goods, the level of production of goods, etc are always determined by considering marginal requirement. For example, a firm is a profit maximizer in the sense it will always produce a commodity in such a way that its profit is maximized. In a perfect ly competitive market, the firm will maximize its profit when marginal costs will b equal to its marginal revenue. The firm will continue to increase its production until marginal revenue becomes equal to its marginal cost. The point of equality is considered to be the equilibrium point of the firm. Thus the concept of margin is very important in economic decision making. Without the consideration of margin requirement it is not possible to conduct economic activities in optimum ways. However, it is not always necessary that all kinds of economic decisions are taken using the marginal concept only. For example, in a perfectly competitive market the break even point of a firm is not determined by any marginal concept. The break even point is relevant in short run production. This point mainly refers to the point of shutting down of production. A firm in a perfectly competitive market will shut down or stop production in short run when its average variable costs become greater than it s average revenue, i.e. its average revenue even fail to cover the firm’s average variable costs. Thus the concept of average is important in taking shut down decision. 3. There has been a huge debate over the tax cut policy by bush administration in 2001 and 2003. Bush tax cuts mainly refer to two important tax policies created and implemented during the Presidential era of George W. Bush. Through these policies, the Bush administration mainly lowered tax rates in the United States. These tax policies effectively lowered marginal tax rates for almost all