opportunity cost

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opportunity cost

n. Economics
The net value or utility of the most desirable alternative to a projected course of action.

opportunity cost

n
(Economics) economics the benefit that could have been gained from an alternative use of the same resource

opportunity cost

The benefit that is sacrificed by choosing one course of action rather than the next best alternative, e.g. the opportunity cost sacrificed in building a road might be use of the land for farming.
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.opportunity cost - cost in terms of foregoing alternatives
cost - the total spent for goods or services including money and time and labor
capital cost, cost of capital - the opportunity cost of the funds employed as the result of an investment decision; the rate of return that a business could earn if it chose another investment with equivalent risk
carrying cost, carrying charge - the opportunity cost of unproductive assets; the expense incurred by ownership
References in periodicals archive ?
While there will always be prospects who don't buy for one reason or another, the key is reducing these opportunity costs to their lowest point, in order to increase your sales and profitability, and take advantage of every possible opportunity.
46, the average cost of rearing - including fixed and variable costs, interest on capital and opportunity costs - was PS1,819.
saving a marginal unit of income), which can often be expressed as equating the opportunity costs of two mutually exclusive actions (e.
In this edition, the relationship between optimization of net present value, capacity constraints, and opportunity costs is detailed more, and it has a new section on blending strategies applicable to coal and iron ore mines, as well as in metal mines.
Opportunity costs can actually loom larger than any financing cost differentials and impose one or both of two types of risk on a business:
When beginning production theory, students learn that opportunity costs are the only costs to be considered when making decisions.
The opportunity costs of this failure to trade are 24 basis points, or $20 billion in the sample period, much higher than the price impact and five times that of commissions.
If you run cash balances too loose, you risk opportunity costs and the potential loss as a result of less than desired levels of controls.
After this is engineered, the biggest problem will be in convincing Purchasing the systems and opportunity costs are lower precisely because the individual component costs--and flexibility--are higher.
The determination of a final schedule becomes an iterative process as management weighs the advantage of reducing opportunity costs against the disadvantages of other financial (e.
Catastrophic failures in grinders and shredders can cost enormous amounts of time and money to repair, not to mention the opportunity costs of the down time.
wages lost because of menstrual problems and opportunity costs of doctor visits), researchers found that if the pills were priced comparably, a year of the new regimen would cost a user $41 less than a year of the standard regimen; societal costs per user would also be reduced by $41 annually, but direct costs for third-party payers would not differ by regimen.

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