Therefore, using this building for a community center entails an opportunity cost
of $2.3 million.
An analysis of alternative policies to achieve the same ends would also be needed to obtain a clear knowledge of the opportunity cost
of the project.
The opportunity cost
of McCartney playing drums frequently would have been higher, because it would have meant forgoing his regular work on bass guitar.
When the opportunity cost
is used to measure the alpha, the number of stocks falls by 27 percent to only a third of the PSEi.
," he says, "is what you lose when you choose one selection out of a set of mutually exclusive alternatives.
is the benefit that could have been gained from an alternative use of the same resource.
For this purpose, we define opportunity cost
more specifically as the benefit that could have been received from running your plant or line as efficiently as it was designed, but was given up due to suboptimal performance.
This is where the potentially huge opportunity cost
comes into play.
I have paraphrased the third most common response as 'opportunity cost
.' Opportunity cost
exists when a company is faced with making a decision between two choices each with their own set of pros and cons.
(6) In this setting, continued investment in a moderately promising start-up company may have a high opportunity cost
for the venture capitalist because it comes at the expense of spending additional time on more promising companies in the fund's portfolio.
Conventional approaches to evaluating buy versus lease or rent decisions acknowledge the time value of initial costs, reflected in the opportunity cost
of the initial early payments.
(2011), while improving on these previous studies by valuing informal elder-care at opportunity cost
. Opportunity cost
of time, the economic value of activities forgone as a result of providing care, may be thought of as the price of supplying informal care and, as such, is one of the key determinants of how much informal care is provided.