What do you understand by the 'opportunity cost'

[Xtynehappy]

As far the business world is concerned the term opportunity cost simply means the cost of a foregone alternative.

 

[Suba]

Opportunity costs are costs that arise as a result of lost opportunities to fulfill other interests. So opportunity costs occur as a result of having two or more choices. The easiest example is that you are faced with two choices of becoming a freelance writer or working in an office. If you choose to become a freelance writer, you will lose opportunity costs such as receiving a salary every month, allowances, transportation and lunch money, etc.

 

[Augusta]

it is a forgone alternative which is choosing one thing that is most significant over another

 

[King Belieal]

Opportunity cost is the thing that you have rather chosen to pay for instead of the other need that you have.

 

[Suba]

Opportunity cost allows you to make the right choice from several alternative options for a project and will help you to mitigate choice risks and also maximize potential opportunities.

 

[kerryjoy]

Opportunity costs are the costs incurred from missed opportunities to pursue other interests.

 

[Trush Jodie]

If you have $1000 and you desire to buy a car and a computer for your business but the amount can only afford one of them. And you end up choosing to buy a car, the computer is the opportunity cost.

 

[Springtime]

Opportunity cost is the potential benefit that an investor, business or an individual consumer misses out on when choosing one alternative over another.

 

[magnus2022]

If you have $1000 and you desire to buy a car and a computer for your business but the amount can only afford one of them. And you end up choosing to buy a car, the computer is the opportunity cost.

Wonderful explanation! You can be a good teacher. There is nothing like using a simple illustration to teach . Even a kindergarten pupil will understand what opportunity cost means through this your illustration

 

[Augusta]

We need to always apply opportunity costs to the different things we are doing. Just leave some things and go for the best.