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What is the opportunity cost?

幫考網(wǎng)校2020-11-30 15:15:47
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Opportunity cost refers to the value of the next best alternative that must be given up in order to pursue a certain action or decision. It is the cost of the foregone opportunity, or the benefits that could have been gained from choosing an alternative option. For example, if a person decides to invest money in stocks, the opportunity cost would be the potential returns that could have been earned if the money was invested in real estate or a savings account instead.
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