Opportunity cost is the value of the next best alternative that is foregone when a decision is made to pursue a particular course of action. It represents the benefits that could have been gained by choosing an alternative option. In other words, it is the cost of not choosing the next best alternative. Opportunity cost is a fundamental concept in economics and decision-making, as it helps individuals and businesses make informed choices by considering the trade-offs involved in different options.
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It represents the benefits that could have been gained by choosing an alternative option. Show more…
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