The value (not just in cash!) of what you give up when you choose to do one thing rather than another.
For example, if you have two weeks vacation accrued, you can EITHER spend it skiing in the mountains OR relaxing on the beach; even if you could afford to, you cannot do both.
If you have a couple of hours, you can EITHER do your homework, OR play games. Playing games is more fun, and has an immediate payoff in terms of enjoyment, but an evening studying may make the difference between an "A" and a "C", which may mean the difference between being accepted to a particular college or being passed over. In the longer view, in terms of the difference in earning power and other opportunities later on over the course of a career, the cash value of the "opportunity cost" of a decision may be the smallest part of the equation.
Opportunity costs are something you miss out on, the "cost" you must pay in order to take the other choice or opportunity. Say you are at a fair you see two things you like 1: yummy pink cotton candy or 2: A velvet teddy bear If you choose the bear the cotton candy is your opportunity cost!
Opportunity cost is the next-best choice available to someone who chooses between several mutually exclusive choices. Examples:
Opportunity cost is the cost that an opportunity presents. The opportunity benefit is the benefit of the opportunity that is being presented.
Opportunity cost means that there is an opportunity to get something in a lower cost. __by Alondra Rico
Opportunity cost is something for the next porpose.
Yes, opportunity cost is a relevant cost because it can be used in something more productive.
Opportunity cost is what you give up in order to get something else. Paying money is the opportunity cost for ice cream for example.
Opportunity Cost can vary depending on what you are giving up exactly.
As we decide to choose more units of anything, the opportunity cost of each additional unit will rise. This means that the opportunity cost of the second unit will be greater than that of the first unit. The opportunity cost of the third unit will be greater than that of the second unit. And so forththe law of opportunity cost states that the more of a product that is produced,the greater is its opportunity cost,hence increasing marginal opportunity cost in simple terms refers to an extra or additional opportunity cost of foregoing other products to produce a unit of another product
Real cost is the price which is real not a fake price
Opportunity cost is fundamental in understanding the true economist cost (and thus profitability) of actions.
The opportunity cost of holding money is the nominal interest rate.
The scarcer the resourse the greater the opportunity cost
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