Opportunity cost is a concept in economics that refers to the value of the next best alternative that is forgone when making a choice — i.e., the cost of the best alternative that is not chosen.

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In business, practical experience usually outshines theoretical knowledge by a wide margin. However, this doesn't mean that ignorance is an asset. Economic concepts could serve as useful mental models ...

Businesses make a variety of decisions on a daily basis: choosing the appropriate amount of inventory, balancing cash flows and selecting the ideal marketing plan are just a few. However, since ...

Opportunity costs are not actual expenses you incur while doing business, but they could represent a loss to business revenue that's greater than your actual out-of-pocket expenses. Some opportunity ...

Many of us pride ourselves on being resourceful and self-sufficient. Tackling tasks ourselves—whether preparing a home-cooked meal or taking on a complex work project—often feels rewarding. However, ...

When an investor is analyzing and comparing options, opportunity cost reflects the potential benefits that the investor gives up by electing against some of the options. Read on to learn about the ...