Cryptocurrency Q&A
How to define opportunity cost?
How to define opportunity cost?
Lucia
Wed Jan 22 2025
|
5
answers
1222
I'm trying to understand the concept of opportunity cost. What does it mean and how can it be defined in the context of economics and decision-making?
5 answers
Davide
Fri Jan 24 2025
Imagine a scenario where a business is contemplating the acquisition of two new tractors.
Was this helpful?
396
83
emma_lewis_pilot
Fri Jan 24 2025
The opportunity cost in this instance would be the earnings and profitability that could have been gained from undertaking an additional project had the tractors been purchased.
Was this helpful?
143
32
henry_rose_scientist
Fri Jan 24 2025
An opportunity cost represents the value associated with the alternative that is forgone when a business chooses a particular course of action.
Was this helpful?
178
95
CryptoWanderer
Fri Jan 24 2025
Essentially, the business is weighing the immediate benefits of acquiring the tractors against the potential long-term gains from pursuing another venture.
Was this helpful?
145
66
SejongWisdomKeeper
Fri Jan 24 2025
In decision-making processes, companies must consider the potential benefits they sacrifice by opting for one strategy over another.
Was this helpful?
360
35
