Final answer:
The contemporary management tool that focuses on potential limiting factors in maximizing long-run profit is called the theory of constraints, which is related to the concept of scarcity and budget constraints in economics.
Step-by-step explanation:
The contemporary management tool that focuses on restrictions that limit a company's ability to maximize long-run profit is commonly known as the theory of constraints. This approach helps businesses identify the most significant limiting factor (referred to as a 'constraint') that stands in the way of achieving their goals. Once the constraint is identified, efforts are directed toward its improvement or removal to enhance the production process and increase profitability.
In the context of economics and decision-making, the concept of constraints is critical as it relates to the notion of scarcity. Scarcity implies that resources are limited, and therefore businesses must make tradeoffs, prioritizing the allocation of these resources to optimize outcomes. The budget constraint acts as the frontier of the opportunity set and is determined by the relative price of choices, illustrating the range of available options within the financial capacity of a firm or individual.