Opportunity Cost

By: Joshua Stafford

What is Opportunity Cost?

The loss of potential gain from other alternatives when one alternative is chosen. Opportunity cost is when you are left with discomfort because you miss out on one of the choices if you have to choose between two.

Examples of Opportunity Cost

-Someone gives up going to see a movie to study for a test in order to get a good grade. The opportunity cost is the cost of the movie and the enjoyment of seeing it.

-Someone gives up going to see a movie to study for a test in order to get a good grade. The opportunity cost is the cost of the movie and the enjoyment of seeing it.


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Advantages of Opportunity Cost

-You get enjoyment and delight with the choice you made.

-You can do what you wanted to do.


Disadvantages of Opportunity Cost

-Miss out on the other choice.

-Are left with discomfort.

-Wished you chose the other choice.