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What is Opportunity Cost
In microeconomic theory, the opportunity cost of a choice is the value of the best alternative forgone where, given limited resources, a choice needs to be made between several mutually exclusive alternatives. Assuming the best choice is made, it is the “cost” incurred by not enjoying the benefit that would have been had by taking the second best available choice. The New Oxford American Dictionary defines it as “the loss of potential gain from other alternatives when one alternative is chosen”. 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. Thus, opportunity costs are not restricted to monetary or financial costs: the real cost of output forgone, lost time, pleasure, or any other benefit that provides utility should also be considered an opportunity cost.
How you will benefit
(I) Insights, and validations about the following topics:
Chapter 1: Opportunity cost
Chapter 2: Perfect competition
Chapter 3: Output (economics)
Chapter 4: Sunk cost
Chapter 5: Cost
Chapter 6: Competitive advantage
Chapter 7: Managerial economics
Chapter 8: Economic cost
Chapter 9: Implicit cost
Chapter 10: Operating surplus
Chapter 11: Accounting constraints
Chapter 12: AP Macroeconomics
Chapter 13: Engineering economics
Chapter 14: Barriers to exit
Chapter 15: Profit (economics)
Chapter 16: Shutdown (economics)
Chapter 17: Asset
Chapter 18: Output (economics)
Chapter 19: Return on investment
Chapter 20: Economics terminology that differs from common usage
Chapter 21: Parable of the broken window
(II) Answering the public top questions about opportunity cost.
(III) Real world examples for the usage of opportunity cost in many fields.
Who this book is for
Professionals, undergraduate and graduate students, enthusiasts, hobbyists, and those who want to go beyond basic knowledge or information for any kind of Opportunity Cost.
In microeconomic theory, the opportunity cost of a choice is the value of the best alternative forgone where, given limited resources, a choice needs to be made between several mutually exclusive alternatives. Assuming the best choice is made, it is the “cost” incurred by not enjoying the benefit that would have been had by taking the second best available choice. The New Oxford American Dictionary defines it as “the loss of potential gain from other alternatives when one alternative is chosen”. 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. Thus, opportunity costs are not restricted to monetary or financial costs: the real cost of output forgone, lost time, pleasure, or any other benefit that provides utility should also be considered an opportunity cost.
How you will benefit
(I) Insights, and validations about the following topics:
Chapter 1: Opportunity cost
Chapter 2: Perfect competition
Chapter 3: Output (economics)
Chapter 4: Sunk cost
Chapter 5: Cost
Chapter 6: Competitive advantage
Chapter 7: Managerial economics
Chapter 8: Economic cost
Chapter 9: Implicit cost
Chapter 10: Operating surplus
Chapter 11: Accounting constraints
Chapter 12: AP Macroeconomics
Chapter 13: Engineering economics
Chapter 14: Barriers to exit
Chapter 15: Profit (economics)
Chapter 16: Shutdown (economics)
Chapter 17: Asset
Chapter 18: Output (economics)
Chapter 19: Return on investment
Chapter 20: Economics terminology that differs from common usage
Chapter 21: Parable of the broken window
(II) Answering the public top questions about opportunity cost.
(III) Real world examples for the usage of opportunity cost in many fields.
Who this book is for
Professionals, undergraduate and graduate students, enthusiasts, hobbyists, and those who want to go beyond basic knowledge or information for any kind of Opportunity Cost.
208 printed pages
- Original publication
- 2024
- Publication year
- 2024
- Publisher
- One Billion Knowledgeable
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