125k views
15 votes
How do you determine opportunity cost

User Ellie
by
7.7k points

1 Answer

6 votes

Answer:

See below

Step-by-step explanation:

Opportunity cost is described as the foregone benefit by preferring one option over others. Opportunity cost arises when a choice is being made from several possible alternatives. When the preferred option is selected, the benefits from the other alternatives are forfeited.

Opportunity cost is determined by evaluating the forfeited benefits. The benefits from the next best alternative are the opportunity costs. In other others words, the foregone advantages of the option ranked second is the opportunity cost.

User Icecreamsword
by
7.3k points