Question

What is opportunity cost? Explain your answer with Example?

Answer 1

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.

plz mark it brainlist if u like this ans!!!

Answer 2

Hi! Here is ur answer
Investors are always fased with options about where they should invest there money. Opportunity cost is the cost of foregone alternative if you choose one alternative over another, then the cost of choosing that alternative is an opportunity cost. The term opportunity cost is often used in finance and economics when trying to choose one investment. It is the measure of any economic choice as compared to the next best one. For eg - there is an opportunity cost for choosing an investment in bonds over an investment in stocks.........



Pls mark as brainliest if u really liked my answer