Opportunity Cost

America, The Land of Opportunity... Costs

What is Opportunity Cost?

Opportunity cost is the money or benefits lost when going after/pursuing a particular course of action instead of a mutually friendly/economically friendly course of action. What you sacrifice when choosing one alternative over another.

Why is it important?

It is the ability to choose an item, good, or service, and the opportunity cost is the benefits you could have gained choosing the alternative decision. It is very important because it is how individuals and even large business's make hard decisions daily. It determines what we do, and the decisions we make daily.