1. Most businessmen would not accept jobs that would cover the total cost (direct material, direct labor, overhead) plus mark-up for profit. They would readily advance such reason that in order for the firm to make a profit, only jobs covering total cost plus mark-up should be accepted. Cite instances when the above may be inconsistent with the profit maximization goal of the firm.

2. How do cyclical fluctuations in the economy observe the real productivity performance of the inputs within a firm? What other factors have similar effects on one's productivity?