In economics, opportunity cost is the value of what you have to give up in order to choose something else. In a nutshell, it’s a value of the road not taken.Start your online business today. For free.Start free trial Owning a business is about making choices: where to set up shop,...
noun , Economics. the money or other benefits lost when pursuing a particular course of action instead of a mutually-exclusive alternative: The company cannot afford the opportunity cost attached to policy decisions made by the current CEO.Discover...
What is the definition of opportunity cost?Each business transaction and strategy has benefits related to it, but businesses must choose a specific action. By choosing one alternative, companies lose out on the benefits of the other alternatives. In other words, opportunity costs are not physical ...
Kevin has edited encyclopedias, taught history, and has an MA in Islamic law/finance. Cite this lesson Opportunity costs are at the center of the economic sphere and govern the cost of every financial process. Learn more about the definition and relative calculations of opportunity cost, explore...
Law of Increasing Opportunity Cost | Calculation & Examples Marginal Opportunity Cost | Definition, Formula & Examples Opportunity Cost: Definition, Calculations & Examples Production Possibilities Curve | Definition, Graph & Example Trade-Off in Economics | Definition, Theory & Examples Opportunity Cost ...
If that person invested $10,000 in Stock A and received a 5% return while Stock B makes a 7% return, the opportunity cost is 2%. One way of conceptualizing opportunity cost is as the amount of money one could have made by making a different investment decision. Importantly, opportunity ...
opportunity cost (redirected fromEconomic cost) Thesaurus Financial Encyclopedia Related to Economic cost:opportunity cost,Total cost,Economic Profit,Accounting cost opportunity cost n.Economics The net value or utility of the most desirable alternative to a projected course of action. ...
Opportunity cost is an economics term that refers to the value of what you have to give up in order to choose something else. In a nutshell, it’s a value of the road not taken.
In economics,riskdescribes the possibility that an investment's actual and projected returns will be different and that the investor may lose some or all of their capital. Opportunity cost reflects the possibility that the returns of a chosen investment will be lower than the returns of a forgone...
In economics,riskdescribes the possibility that an investment's actual and projected returns will be different and that the investor may lose some or all of their capital. Opportunity cost reflects the possibility that the returns of a chosen investment will be lower than the returns of a forgone...