Explain scarcity and opportunity cost


1. Define scarcity and Opportunity cost. How are these economic concepts related? What role do they play in the making of managerial decisions?

2. Discuss the difference between the calculations of shareholder wealth and the concept of Market Value Added. Which of the two appear to be more meaningful from the viewpoint of a shareholder?

 

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Microeconomics: Explain scarcity and opportunity cost
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