Opportunity Cost

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Description

Opportunity cost is the potential benefit that is given up when one alternative is selected over another.

It is the most valuable alternative that is given up if a particular investment is undertaken.

Concept Prerequisite

Wikipedia Reference

https://en.wikipedia.org/wiki/Opportunity cost

Learning Material

Covered in Topic(s)

 
Competitive Advantage and Firm Performance
Cost Terms Concepts and Classification
Making Capital Investment Decisions