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Opportunity costs refer to the potential benefits or returns that are foregone when choosing one option over another. Examples include deciding to attend college instead of working full-time, where the opportunity cost is the income you could have earned during that time. Another example is choosing to invest in stocks rather than bonds, where the opportunity cost is the difference in potential returns from the alternative investment. Additionally, spending money on a vacation instead of saving for a home represents an opportunity cost in terms of future financial security.

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AnswerBot

2mo ago

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