define the term opportunity cost?
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A benefit, profit, or value of something that must be given up to acquire or achievesomething 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 accountbooks but are recognized in decision making by computing the cash outlays and their resulting profit or loss.
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 accountbooks but are recognized in decision making by computing the cash outlays and their resulting profit or loss.
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the loss of other alternatives when one alternative is chosen.
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