"I never talk about any grades of a student, but this student took Econ 1 in the fall [of 1995], and in the spring [of 1996], he took opportunity cost
to heart, dropped out of Stanford, and joined the pro tour."
This commentary provides two conceptual frameworks for thinking about explanation in negative messages: opportunity cost
, from economic theory, and attribution, from marketing theory.
However, if the opportunity cost
is included, the costs and benefits look like the bottom box in Exhibit 2.
The public and the political leadership have to be made aware of the opportunity cost
of expenditure programmes while the cost effectiveness of programme implementation must be improved.
Critically, economics teaches that the relevant cost is what we call the opportunity cost
, which is not the number of hours a task takes you but rather what you forgo by not pursuing the next best use of your time.
: In economics the opportunity cost
is the cost of the opportunity lost in order to avail another one.
Perhaps, the most ideal benchmark is the minimum return based on opportunity cost
, which is derived by taking the sum of the 'risk-free' rate as represented by the 10-year bond yield and the risk premium.
"As this type of police activity is considered to be normal police operational activity, it is not, usually, separately costed, with the matter being considered to be an opportunity cost
. The Force, in this instance, is in a position to provide an overview estimate of cost for the escort provided by the Force over 27 days.
Today, he explains the concept of "opportunity cost
"The problem is that such investors fail to calculate the opportunity cost
,'' points out Subramanyam.
is defined as a benefit that could have been received, but was given up in order to take another course of action.
Every business has an opportunity cost
: the expense associated with lost opportunities --the deals that didn't close and the prospects who walked right by your storefront or were turned off by your website or salesperson.