Question by  Anonymous

What is opportunity cost?

Why is it important to understanding economics?


Answer by  somerset (801)

It is the money not made by doing one project instead of doing something else. If for example you decide to paint a room yourself instead of paying someone, you have saved that money, but you have lost if during that time you could have earned it with other skills.


Answer by  jpkbatl (85)

Generally speaking it is the highest price or rate of return an alternative project or investment would provide and is not measurable by standard accounting.


Answer by  Ed63 (10)

Opportunity cost is cost of a dollar today versus cost of a dollar tomorrow. Opportunity cost is lost tomorrow for a dollar that was not invested today because the opportunity to invest is no longer available.


Answer by  SallyJ64 (3121)

Oppertunity cost is essentailly what happens when you have to economically decide between two choices and one will be eliminated. For example, if you go to a vending machine with a dollar and have to choose between chips and a soda, the one you don't choose is an opportunity cose.


Answer by  Anonymous

The value of the next best alternative of a resource, forgone when making an economic decision.


Answer by  priyaragunath (36)

The economic literacy should be thought from the elementary school itself,We should know about the economic situations of the country about the GDP growth its development the inflation etc.


Answer by  Anonymous

The next best alternative forgone. And its important because there is no such thing as a free lunch!

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