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 exclusive …

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.

Nov 11, 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 alternative (such as …

Oct 15, 2025 · Opportunity cost is money or benefits lost by not selecting a particular option during the decision-making process. Opportunity cost is composed of a business’s explicit and implicit costs. …

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 planning, and making …

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, while an …

Jul 12, 2025 · Opportunity cost refers to the potential benefits missed when choosing one option over another, while monetary cost represents the actual amount of money spent on that option.

Opportunity cost is a foundational concept in economics that provides a framework for understanding the true cost of decisions in terms of foregone alternatives.