Answer to Question #237022 in Microeconomics for fgghhgc

Question

Identify a set of conrcepts in Managerial Economics that you found most interesting and useful. Show why these sets of concepts impressed you with a case study

Answer 1

The opportunity cost concept:

The opportunity cost of a decision means sacri­ficing alternatives. The concept measures the most valuable options from the list. This concept helps one choose the best possible option among all the available options that will use the scarce resources wisely to yield maximum profit.

For example, the opportunity cost of working for oneself in one’s own factory is the salary that one could earn in others occupations.