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opportunity cost

Opportunity cost refers to the benefit that a person gave up by deciding to take a particular course of action. Because every resource (money, time, physical assets) can be put to alternative uses, every action carries an opportunity cost. This is an important consideration in decision making in business.

You can find a more detailed explanation of the concept here:

http://www.econlib.org/library/Enc/OpportunityCost.html


» Glossary