MANAGERIAL ECONOMICS AND BUSINESS
STRATEGY COMPREHENSIVE STUDY
GUIDE WITH VERIFIED ANSWERS 2026
• manager . Answer: A person who directs resources to achieve a stated
goal.
• Economics . Answer: The science of making decisions in the presence
of scarce resources.
• managerial economics . Answer: The study of how to direct scarce
resources in the way that most efficiently achieves a managerial goal.
• economic profits . Answer: The difference between total revenue and
total opportunity cost.
• opportunity cost . Answer: The cost of the explicit and implicit
resources that are forgone when a decision is made.
• incentives . Answer: Affect how resources are used and how hard
workers work.
• consumer-producer rivalry . Answer: Occurs because of the competing
interests of consumers and producers.
STRATEGY COMPREHENSIVE STUDY
GUIDE WITH VERIFIED ANSWERS 2026
• manager . Answer: A person who directs resources to achieve a stated
goal.
• Economics . Answer: The science of making decisions in the presence
of scarce resources.
• managerial economics . Answer: The study of how to direct scarce
resources in the way that most efficiently achieves a managerial goal.
• economic profits . Answer: The difference between total revenue and
total opportunity cost.
• opportunity cost . Answer: The cost of the explicit and implicit
resources that are forgone when a decision is made.
• incentives . Answer: Affect how resources are used and how hard
workers work.
• consumer-producer rivalry . Answer: Occurs because of the competing
interests of consumers and producers.
