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Tyrone has three options on how to spend his Saturday afternoon: to go out with friends, watch a movie, or wash his car. Tyrone's opportunity cost of

User Aregnier
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The value of going out with friends or watching a movie.

Step-by-step explanation:

Opportunity cost represents the benefits when we choose one option over another. It is a major concept in economics and can get get easily overlooked while making decisions, if you are not careful.

If you aware of the missed opportunities you make better decisions while choosing one investment over another. It is not shown in financial reports but businessmen use this concept to make better decisions when they face the dilemma of choosing from multiple options.

User Xingzhou Liu
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