What is opportunity cost and explanation plz
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An opportunity cost is the loss from choosing one alternative over others. For example if I have two mutually exclusive alternatives today
1) seeing a movie with friends
2) going to a job interview in which I will succeed
If I choose option 1 then I will lose the job and hence the salary and so on for some limited period of time. So this is the opportunity cost of option 1, some finite, non zero amount.
If I choose option 2 I don't loose anything. Rather I gain profit of the job. So, there is no loss. The opportunity cost of this option is '0'.
1) seeing a movie with friends
2) going to a job interview in which I will succeed
If I choose option 1 then I will lose the job and hence the salary and so on for some limited period of time. So this is the opportunity cost of option 1, some finite, non zero amount.
If I choose option 2 I don't loose anything. Rather I gain profit of the job. So, there is no loss. The opportunity cost of this option is '0'.
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Answer:
BELOW
Explanation:
Opportunity costs represent the potential benefits an individual, investor, or business misses out on when choosing one alternative over another. ... Because by definition they are unseen, opportunity costs can be easily overlooked if one is not careful.
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