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 ?
This is where the potentially huge opportunity cost comes into play.
Interest on capital and opportunity cost of a dairy heifer accounted on average for 24.
We learned about this cool thing called opportunity cost in economics today"--my college freshman year roommate, early fall, 1997
He explains general concepts such as utility function, breakeven cut-off grade, and opportunity cost; the estimation of breakeven cut off grades, with examples of how to separate ore from waste, choose between different processes, analyze polymetallic deposits, and develop stockpiling strategies; opportunity cost and constraints imposed by the geology of the deposit; the costs that should be included in cut-off grade calculations; situations where there is a need to stockpile and blend material to satisfy technical and marketing requirements; and new methods to optimize blending depending on the objective.
In this light, the corporate opportunity cost arises from the company being locked into a long-term real estate lease with a landlord who has no mechanism to permit asset closures, offer substitute assets, permit lease assignments, or consider the sale of the property.
Generally this time of year, the opportunity cost of repairing roads in Namibia is the construction of new ones in different parts of Namibia.
I repeat and the Finance Minister of India must know better that there is a huge opportunity cost to the Government of India.
With the direct cost of extracting additional barrels from developed fields minimal and no real opportunity cost of using those barrels to generate power, it was rational to fuel power plants with them.
It is built upon the foundation of opportunity cost and is crucial to the construction of the total cost curve, the firm supply curve, the notion of economic profits, and the firm's shutdown condition.
Chiraphol Chiyachantana, Singapore Management University, and Pankaj Jain, University of Memphis, "The Opportunity Cost of Inaction in Financial Markets: An Analysis of Institutional Decisions and Trades"
We are realising now that the cost escalation is opportunity cost.
The difficulties in forecasting M2 spurred a number of publications examining whether the deterioration in the M2 equation's forecasting ability was temporary, or whether more fundamental factors-such as flaws in the construction of the M2 aggregate, the opportunity cost, or both--were at work.

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