Scarce resource analysis

Economics - microeconomics.

Scarce resource analysis is a planning technique that seeks to maximise financial contribution to fixed costs by making the best use of the scarce resource.

Overall profits are maximised - or overall losses minimised - by maximising contribution per unit of the available scarce resource.

See also

• Contribution
• Incremental cash flows
• Limiting factor
• Microeconomics
• Opportunity cost of capital
• Production possibility curves
• Scarce resource
• Scarcity