Opportunity cost is a concept in economics that refers to the value of the next best alternative that is forgone when making a choice — i.e., the cost of the best alternative that is not chosen.

Essentially, opportunity cost is the potential benefits or gains an investor, consumer or business misses out on when one alternative is chosen over another. Here are some key takeaways: You cannot ...

Once you understand opportunity cost, you’ll make smarter financial decisions, especially when you’re managing side gigs or investing your effort, time and money. Here’s what you should know, so you ...

Opportunity Cost Definition Opportunity cost is the value of what you lose when you choose from two or more alternatives. It’s a core concept for both investing and life in general. When you invest, ...

Learn how outlay costs impact business decisions, differentiate between outlay and opportunity costs, and understand cash vs. accrual accounting within financial strategies.

Explore the sunk cost dilemma, a key financial concept impacting decisions on investing in failing projects. Learn how to manage it with real-world examples and insights.

Opportunity Cost Examples Opportunity costs are embedded in the fabric of everyday life. Everyday examples of opportunity costs might include choosing to commute using public transit for 80 minutes ...

Whether it means investing in one stock over another or simply opting to study for a big math exam instead of meeting a friend for pizza, opportunity cost pervades every facet of life. That’s because ...