What is opportunity cost
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Posted by Ojas Verma 6 years ago
- 3 answers
Rashi ? Gupta 6 years ago
Yogita Ingle 6 years ago
Opportunity cost in economics can be defined as benefits or value missed out by business owners, small businesses, organization, investors, or an individual because they choose to accomplish or achieve anything else. It helps organizations in better decision-making by showing the lost opportunity because of investing over an alternative which can be anything like shares, stock market, real estate, land, services, etc. Generally, the financial report does not show the opportunity cost because it is not only about money or monetary cost. It is also associated with the lost time invested somewhere else which is providing utility. In simple terms, it is a concept in microeconomics that tells you about the output and potential opportunities foregone.
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Zoya Ali 6 years ago
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