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 ...

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.

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 ...