Explain The Meaning Of Opportunity Cost?

1.	Explain The Meaning Of Opportunity Cost?
Answer» This COST REFERS to the value of sacrifice made or benefit of OPPORTUNITY foregone in accepting an alternative course of action. For example, a firm financing its expansion PLANS by withdrawing money from its bank deposits. In such a case the lots of interest on the bank deposit is the opportunity cost for carrying out the expansion PLANT. This cost refers to the value of sacrifice made or benefit of opportunity foregone in accepting an alternative course of action. For example, a firm financing its expansion plans by withdrawing money from its bank deposits. In such a case the lots of interest on the bank deposit is the opportunity cost for carrying out the expansion plant.

Answer»

This COST REFERS to the value of sacrifice made or benefit of OPPORTUNITY foregone in accepting an alternative course of action. For example, a firm financing its expansion PLANS by withdrawing money from its bank deposits. In such a case the lots of interest on the bank deposit is the opportunity cost for carrying out the expansion PLANT.

This cost refers to the value of sacrifice made or benefit of opportunity foregone in accepting an alternative course of action. For example, a firm financing its expansion plans by withdrawing money from its bank deposits. In such a case the lots of interest on the bank deposit is the opportunity cost for carrying out the expansion plant.

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