Term of the Day Opportunity Cost A benefit, profit, or value of - TopicsExpress

Term of the Day Opportunity Cost A benefit, profit, or value of something that must be given up to acquire or achieve something else. Since every resource (land, money, time, etc.) can be put to alternative uses, every action, choice, or decision has an associated opportunity cost. Opportunity costs are fundamental costs in economics, and are used in computing cost benefit analysis of a project. Such costs, however, are not recorded in the account books but are recognized in decision making by computing the cash outlays and their resulting profit or loss. Usage Example When choosing between two options, it can be helpful to determine the opportunity cost of picking one option over the other to see which would be the most beneficial option.

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