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.

Learn about imputed costs, often known as opportunity or implicit costs, which represent the forgone benefits when choosing one action over another with your assets.

Forbes contributors publish independent expert analyses and insights. Tim Maurer covers how personal finance is more personal than finance. May 05, 2024, 07:00am EDT Sunk cost, opportunity cost, and ...

Everyday examples of opportunity costs might include choosing to commute using public transit for 80 minutes instead of driving for 40 minutes. You might save on the cost of gas but double the trip ...

Essentially, opportunity cost is the potential benefits or gains an investor, consumer or business misses out on when one alternative is chosen over another. Here are some key takeaways: You cannot ...

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Opportunity Cost Examples Opportunity costs are embedded in the fabric of everyday life. Everyday examples of opportunity costs might include choosing to commute using public transit for 80 minutes ...

Whether it means investing in one stock over another or simply opting to study for a big math exam instead of meeting a friend for pizza, opportunity cost pervades every facet of life. That’s because ...