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opportunity cost
(redirected from Alternative cost)

   Also found in: Medical, Financial, Wikipedia, Hutchinson 0.04 sec.

opportunity cost

In economic terms, the opportunities forgone in the choice of one expenditure over others. For a consumer with a fixed income, the opportunity cost of buying a new dishwasher might be the value of a vacation trip never taken or several suits of clothes unbought. The concept of opportunity cost allows economists to examine the relative monetary values of various goods and services.



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Each qualifying senior can preserve up to an additional $10,000 of his or her estate legacy over a 2-year length of residency while saving the alternative cost premium of private-pay nursing.
The alternative cost are ignored: Hours spent in rewrite of the manual, in reviewing and in counseling, by the writers and the technical people involved.
Arbitrage is a fancy term sometimes used to describe the benefits of the alternative cost of money.
 
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