106k views
2 votes
What is opportunity cost

User Lsuarez
by
4.9k points

2 Answers

4 votes

Answer:

Opportunity cost is the loss or the benefit that could have been enjoyed if the alternative choice was chosen.

Step-by-step explanation:

As a representation of the relationship between scarcity and choice, the objective of opportunity cost is to ensure efficient use of scarce resources. It incorporates all associated costs of a decision, both explicit and implicit. Opportunity cost also includes the utility or economic benefit an individual lost, it is indeed more than the monetary payment or actions taken. As an example, to go for a walk may not have any financial costs imbedded to it. Yet, the opportunity forgone is the time spent walking which could have been used instead for other purposes such as earning an income.

User Jamie Twells
by
4.4k points
13 votes

Answer:

the loss of other alternatives when one alternative is chosen.

Step-by-step explanation:

the loss of other alternatives when one alternative is chosen.

User Mark Gargan
by
4.8k points