Opportunity Cost

Knowledge Center

What is Opportunity Cost?

Opportunity Cost is an economic term that refers to the advantages, benefits or value of the second best business alternative, which are forgone as a result of accepting the best alternative.

It is a term used in economics, decision-making, negotiating, etc. to mean the cost of something in terms of an opportunity foregone (and the benefits that could be received from that opportunity), or the most valuable foregone alternative.

Also it can be used to refer to the value of the best alternative use of a resource. This consists of the maximum value of other outputs we could and would have produced had we not used the resource to produce the item in question.

Forum Forum about Opportunity Cost. 🔥 Opportunity Cost Definition I can say it is the loss caused by opting for the last best opportunity instead of today's best opportunity in terms of benefits.... 1   Start a new topic about Opportunity Cost Sign up for free

Courses about Opportunity Cost. Beginners Course Advanced Course Course for Experts

Expert Tips Advanced insights about Opportunity Cost. Here you will find professional advices by experts. Consultancy Tips Teaching Tips Practical Implementation Tips

Information Sources Various sources of information regarding Opportunity Cost. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops.

Tools Useful tools regarding Opportunity Cost. News Videos Presentations   Books Academic More

Compare also: Cost-Benefits Analysis  |  Time Value of Money  |  Feasibility Study  |  Efficiency Wage

Return to Management Hub: Decision-making & Valuation  |  Finance & Investing

More on Management  |  Return to Management Dictionary

This ends our Opportunity Cost summary and forum.