opportunity cost

(redirected from Opportunity costs)
Also found in: Thesaurus, Medical, Financial, Encyclopedia.

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 ?
Because a product can be viewed as a bundle of resources and because of the linearity in resource consumption stemming from the assumed Leontief technology, a product's opportunity cost is a linear aggregation of the opportunity costs of the resources that it consumes.
Opportunity costs per assisted living unit Even vacant units incur operating expenses Unavoidable/ixed expenses $1,255 at 75% of $55 per resident day Debt service payment [*] $725 Opportunity cost for vacant unit $1,980/month or $23,760/year (*)Payment on 75% debt of $120,000/unit at 9% interest over 30 years.
When applications are solicited, for instance, opportunity costs incurred by targets of bad news should be offset by senders with an offer to provide explanation.
We felt it important to express our view, shared by many in the HIV-infected community, regarding the feasibility and opportunity costs of a large, simple WTST.
Within this context, the concept of cost in economics is based on opportunity costs rather than financial costs.
At the same time, the lost opportunity costs attributable to the gift tax that must be paid (for example, the income that could have been earned on the property) and the loss of a step-up in basis for the property transferred must be considered.
The opportunity costs of a proposed project are the potential benefits that are lost by selecting it.
This paper examines empirical common stock data sets to investigate the opportunity costs of mean--variance optimal portfolios as compared to an investor's direct expected utility maximization.
Opportunity costs are factors in economic decision-making.
The theoretical model suggests that the primary determinants of abortion demand are the costs of obtaining an abortion, tastes, and the opportunity costs of having a child.
If core production is significantly slower than mold production rates, he says foundries must build ahead, accumulate costly core inventories, and incur significant opportunity costs for the castings they could not make as well as the customers they could not satisfy during that build- ahead time.
Since mid-1994, the velocities have been moving more nearly in line with their historical patterns with respect to changes in opportunity costs -- albeit at higher levels.

Full browser ?