Opportunity cost is the cost of foregoing the best outcome by accepting another opportunity. In other words, if a person opts for availing one opportunity, he would have to forego another opportunity.
Alex has a $25,000 worth of shares he can exchange today for $40,000. He wished to wait three months as he thought that the share price might increase but ultimately decided to sell today. After three months the value of the shares became $45,000. Here Alex has foregone the $5000 ($45,000 - $40,000) that he would have earned had he not sold the shares three months ago.
An economist remarks that “the cost of consuming a book is
An oil drilling company must choose between two mutually exclusive extraction projects
Your aunt is thinking about opening a hardware store. She estimates
One year ago, your company purchased a machine used in manufacturing
Professor Wendy Smith has been offered the following deal: A law
A commercial fisherman notices the following relationship between hours spent fishing and
Farmer McDonald gives banjo lessons for $20 an hour. One
Hardin-Gehr Corporation (HGC) began operations 5 years ago
A rookie quarterback is negotiating his first NFL contract. His opportunity
The end of the year is approaching. You’re going to meet
