opportunity cost


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opportunity cost

the opportunities foregone in undertaking one activity measured in terms of the other possibilities that might have been pursued using the same expenditure of resources. While opportunity cost is mainly a concept in economics, it also applies more generally to human existence. For example, given the finitude of time in the human life-span and the impossibility of doing many activities more than one at a time or other than in one-to-one interactions, opportunity costs are involved in many human activities, not only those in which economic resources are involved.
References in periodicals archive ?
Opportunity cost is the benefit that could have been gained from an alternative use of the same resource.
The point of all of this, for any business or organization, is that there is a huge potential opportunity cost associated with a lack of understanding of the power of your website.
When it comes to opportunity costs, show your clients how your partnership benefits them in the short and long run.
Although the individual company may be economically viable, the return on time and capital to the individual venture capitalist is less than the opportunity cost.
security deposit) at the end of the lease or rent term from the sum of initial costs (down payments or security deposits), subsequent monthly lease or rent payments, and the opportunity cost of the initial payments.
Excluding interest and opportunity cost, purchased feed and homegrown forage accounted for 36.
What's the difference between opportunity cost and just cost?
In this case, assuming Sigma has capacity, its opportunity cost is the incremental cost of producing BX-12.
As with the earlier discussion regarding store underperformance, the opportunity cost risks of missed asset expansion opportunities are highly variable.
As a result, two fundamental drivers generally influence the value of any capital asset including farmland, future earnings and the expected opportunity cost of funds--the rate at which market participants discount future earnings.
With the direct cost of extracting additional barrels from developed fields minimal and no real opportunity cost of using those barrels to generate power, it was rational to fuel power plants with them.
It is built upon the foundation of opportunity cost and is crucial to the construction of the total cost curve, the firm supply curve, the notion of economic profits, and the firm's shutdown condition.
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