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 ?
The linkages among the above set of problems are best understood in terms of opportunity costs.
However, if the opportunity cost is included, the costs and benefits look like the bottom box in Exhibit 2.
However, the other ninety percent of the cases have opportunity costs of $0.
It has been suggested that black teenage women have different opportunity costs or marital market opportunities than white teenagers.
In sum, these multiple constraint and nonlinear constraint models illustrate that individuals at corner solutions may have high, though not directly observable, opportunity costs of time.
Just a small reminder of the opportunity costs of their actions can dramatically affect their purchasing decisions.
And while going through these definitions in the first week of class may be more challenging for students than a less formal, more traditional discussion of opportunity costs, an additional benefit of this approach is that it makes the discussion of explicit and implicit costs in the context of producer theory much easier
Most people understand opportunity cost at an intuitive level," he said, perhaps thinking of his wife.
Thus the opportunity cost of the prepayment should be computed using the anticipated rate of return on taxable assets, which is, of course, almost invariably lower than the rate of return on sheltered assets (because of capital gains taxes).
In the long run, as adjustments in deposit rates caused the opportunity cost to revert to an equilibrium, M2 velocity also tended to return to an associated stable equilibrium level.
Interest costs, and all opportunity costs (including equity) are covered, but no excess profits are made.

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