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 ?
THUS plc, a UK-based provider of voice, networking, Internet and contact centre services, has claimed that hidden costs of hosting are punishing UK companies for successful web sites.
More generally a 1999 study by the International Center for Technology Assessment, which assimilated much of these hidden costs, concluded that a taxpayer in the United States pays $15.14 for a gallon of gas whether or not that taxpayer uses gas.
However, Rayner cautions tenants to carefully consider real estate taxes and insurance provisions in new leases, so as not to fall victim to hidden costs. "Although tenants are in the proverbial catbird seat, they must still analyze all aspects of a lease before signing on the dotted line," he says.
Getting people to think about these hidden costs is the goal of such assessments, he notes.
Hiler said that with each new regulation comes hidden costs to the manufacturing industry, and wit h each new cost, more firms are moving their labor offshore.
E-procurement tools also help move companies away from paper and labor-intensive processes to uncover the hidden costs of purchasing.
According to the study, from The Journal of Psychiatry, "the perceived stigma associated with depressive disorders may thus result in a high proportion of hidden costs to employers." in other words, depressed workers might be doing irreparable harm to the economy by concealing their true state and showing up for work in the wrong frame of mind.
Tom Kitt, the Irish Consumer Affairs Minister, has indicated that consumer protection regulations will be extended to cover airline advertisements after the Director of Consumer Affairs conducted an investigation into the hidden costs of air travel.
The importance of rejects comes from the huge cost of making and shipping bad parts and from related hidden costs that can include scheduling inefficiencies, delayed customer deliveries, and the cost of "lost" production capacity.
Labour yesterday proposed interest-free loans to help the long-term unemployed with the hidden costs of getting back to work.
* Intangibles and hidden costs, such as those involved in administering the outsourcing contract and coordination efforts between internal users and the outsourcing company for upgrades, training and configuration changes.
Additional factors such as waste, alignment problems when trying to run them through a dot matrix printer and compliance issues all contributed to the hidden costs of preprinted forms.