opportunity cost
Definition
Benefit, profit, or value of something that must be given up to acquire or achieve something else. Since every resource (land, money, time, etc.) can be put to alternative uses, every action, choice, or decision has an associated opportunity cost. Opportunity costs are fundamental costs in economics, and are used in computing cost benefit analysis of a project. Such costs, however, are not recorded in the account books but are recognized in decision making by computing the cash outlays and their resulting profit or loss.
opportunity cost is in the Decision Making, Problem Solving, & Strategy, Economics, Politics, & Society, Investing and Planning & Scheduling subjects.
opportunity cost appears in the definitions of the following terms:
marginal rate of transformation,
implied cost,
sunk cost,
increasing opportunity cost,
economic cost,
rate of return rule,
economic analysis,
transfer cost,
cost of capital,
tradeoffs
and
opportunity cost appears in the other term: opportunity cost of capital
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