opportunity cost


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opportunity cost

the amount of money that is alienated by choosing to use it for one project rather than another, i.e. the opportunity to make a profit by investing in another project is lost.
References in periodicals archive ?
While there will always be prospects who don't buy for one reason or another, the key is reducing these opportunity costs to their lowest point, in order to increase your sales and profitability, and take advantage of every possible opportunity.
18) Focusing on opportunity costs may inform this debate and explain the court's choice of common maximization.
Part of the explanation may be that the term opportunity cost simply sounds like something other than what it is.
For those divisions that sell to internal as well as external customers, the organization must absorb an unknown opportunity cost from suboptimization.
OPPORTUNITY COST VALUATION SPAN UPSIDE DOWNSIDE Total Shareholder Valuation Impact 47.
The discount rate represents the opportunity cost of invested funds or the rate of return that an investor would require in order to own this asset.
The opportunity cost is even higher because, given the buoyant demand and prevailing high prices, that oil could be more profitably exported than used domestically.
Early 20th century economists converged on the simple opportunity cost principle of only including avoidable costs in the formulation of total costs.
International trade makes it possible for workers in all countries to produce more goods, and earn higher wages, by specializing in jobs where they are most productive (which, as we will see, is where their opportunity cost is the lowest), and exchanging some portion of their output for goods produced more productively (at lower opportunity cost) in other countries.
He proposed an alternative strategy for empirically modeling M2 by altering the opportunity cost measure to include a long-term Treasury bond rate.
Additionally RealEC's Opportunity Cost Allocation Models allow the lender to further designate the allocation of Mortgage Insurance orders based upon the opportunity to receive an order, instead of the acceptance of an order.
There is also a third cost of living category: the opportunity cost of a senior's home.

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