Opportunity cost is a concept in economics that refers to the value of the next best alternative that is forgone when making a choice — i.e., the cost of the best alternative that is not chosen.

Opportunity cost is the cost of what is given up when choosing one thing over another. In investing, the concept helps show the cost of an investment choice by showing the trade-offs for making that ...

Essentially, opportunity cost is the potential benefits or gains an investor, consumer or business misses out on when one alternative is chosen over another. Here are some key takeaways: Your time ...

Whether it means investing in one stock over another or simply opting to study for a big math exam instead of meeting a friend for pizza, opportunity cost pervades every facet of life. That’s because ...

Many of us pride ourselves on being resourceful and self-sufficient. Tackling tasks ourselves—whether preparing a home-cooked meal or taking on a complex work project—often feels rewarding. However, ...

Opportunity Cost Examples Opportunity costs are embedded in the fabric of everyday life. Everyday examples of opportunity costs might include choosing to commute using public transit for 80 minutes ...

Opportunity Cost Definition Opportunity cost is the value of what you lose when you choose from two or more alternatives. It’s a core concept for both investing and life in general. When you invest, ...