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Explain at least one important difference in the ways an economist and a business person would...

Explain at least one important difference in the ways an economist and a business person would view the valuation of a firm

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Valuation of a firm is calculating whether a business is worthy for investment or take over . An economist would consider the implicit costs of investing in a firm but a business person will only consider accounting costs . A firm's value can be calculated based on just present numerical data by a business person but an economist also considers the monetary values of other assets or opportunities forgone in building the firm .

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