Opportunity Cost

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Offline Md. Alamgir Hossan

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Opportunity Cost
« on: April 15, 2017, 04:50:39 PM »
Opportunity cost is the leaving amount of output of second best alternatives for getting extra one unit of first alternative.
So we can say that, Opportunity cost is the next best alternative foregone.
For example, if we have £20 we can spend it on an economic textbook or we can enjoy a meal in a restaurant. If we spend that £20 on a textbook, the opportunity cost is the restaurant meal we cannot afford to pay.