Jun 10, 2025 · What Is Opportunity Cost? Opportunity cost represents the desirable benefits someone foregoes by choosing one alternative instead of another.

In economics, opportunity cost refers to the potential benefit or gain that is given up when choosing one option over others.

In microeconomic theory, the opportunity cost of a choice is the value of the best alternative forgone where, given limited resources, a choice needs to be made between several mutually …

Opportunity cost refers to what you have to give up to buy what you want in terms of other goods or services. When economists use the word “cost,” we usually mean opportunity cost.

Jul 25, 2025 · A sunk cost is a cost that has already been paid for, whereas an opportunity cost is a prospective return that has not yet been earned. Thus, a sunk cost is backward looking, …

Mar 29, 2021 · Definition – Opportunity cost is the next best alternative foregone. If we spend that £20 on a textbook, the opportunity cost is the restaurant meal we cannot afford to pay.

Apr 17, 2025 · Opportunity cost refers to what you miss out on by going with one option over another comparable option. The concept is an important part of economic and financial …

Dec 23, 2025 · : the added cost of using resources (as for production or speculative investment) that is the difference between the actual value resulting from such use and that of an …

The idea behind opportunity cost is that the cost of one item is the lost opportunity to do or consume something else; in short, opportunity cost is the value of the next best alternative.

Dec 17, 2025 · In economics, the concept of opportunity cost plays a crucial role in decision making. It is defined as the value of the next best alternative that must be given up in order to …