Managers often make decisions that have long-term implications for firm value, yet not all decisions lead to maximized economic profit. This week, you explored the foundational concepts of microeconomics and industrial organization, as well as the distinctions between accounting and economic profit, corporate governance challenges, and market structure dynamics.

1. Consider a firm that reports strong accounting profits but consistently fails to deliver shareholder value.
   • What are some potential managerial mistakes or overlooked opportunity costs that might explain this outcome?
   • How could applying economic profit as a performance metric help improve strategic decision-making?

In your post, apply relevant economic concepts and terminology from this week's material. Support your analysis with real-world examples or personal experiences when possible. Then, respond thoughtfully to at least two of your peers, offering insights, clarifying questions, or alternative perspectives to enrich the discussion. WITH SCHOLARLY REFERENCES