What are the five economics tools addressed in your text? How are they used to solve business problems?

Unless I totally overlooked them, a genuine search throughout all the recommended chapters brought me no closer to pinpointing any of the five specific economics tools by name. The closest I came to discovering economics tools are five core economics concepts or principles which I deduced could be referred to as economics tools by some, that also appear to be underlying themes throughout the chapters, and, can be of considerable assistance to managers in their decision making practice when solving business problems. These core economics concepts shown below can be taken as a guide in decision making and solving business problems:

1. Opportunity Cost: The opportunity cost of using resources is the amount the firm gives up by using these resources. Opportunity cost can be either explicit costs or implicit cost. Explicit costs are the cost of using market-supplied resources, which are the monetary payments to hire, rent, or lease resources owned by others. Implicit costs are the costs of using owner-supplied resources, which are the greatest earnings foregone from using resources owned by the firm in the firm’s own production process. Total economic cost is the sum of explicit and implicit costs.

a) Example of the opportunity cost owned by the firm: Consider a company that paid $500,000 for a property five years ago but the market value of the property has since dropped to $250,000. Since the circumstance of the property value has changed, the implicit cost now is the best return that could be earned if the land is sold for $250,000, not $500,000, and the proceeds are invested. If the $250,000 could be invested at 5% annually, the implicit cost is $12,500 (= .05 *$250,000) per year. It would serve the business manager or entrepreneur best to be alert in