Describe the difference between the Economic Value Added (EVA) ...

[penguins]

Describe the difference between the Economic Value Added (EVA) and the Market Value Added (MVA) approach to determining stockholder wealth.
 
  What will be an ideal response?

Question 2

When a firm increased its output by one unit, its AC rose from 45 to 50. This implies that its MC is
 
  A) 5.
  B) between 45 and 50.
  C) greater than 50.
  D) Cannot be determined from the above information

[taylorsonier]

Answer to Question 1

EVA is the difference between a firm's return on total capital and its cost of capital, while MVA is the difference between the market value (equity plus debt) of a firm and the amount of capital investors have paid into the company.

Answer to Question 2

C