Opportunity Cost

Market Terms

We don't know everything about the markets.  We're just devoted to learners.  Taken from those smarter than ourselves, here's how we define Opportunity Cost.

A major concept in economics, opportunity cost represents the potential benefits a business or investor misses out on by choosing one alternative over another.  To evaluate opportunity costs effectively, the costs and benefits of every available option must be considered and weighted against all alternatives.  By taking opportunity costs into consideration, individuals and businesses can make more profitable decision-making over time.