Examples ยท Finance
Opportunity Cost
Value of the next best choice
Opportunity cost quantifies trade-offs in time, money, or resources to guide better decisions.
- trade-offs
- alternatives
- scarcity
- decision-making
- economics
Definition
Cost equals value of the next best alternative given up.
Examples
Investing in Fund A forfeits Fund B returns; studying skips paid work hours.
Use
Supports choices in investing, careers, and daily time management.