What is opportunity cost

1.	What is opportunity cost
Answer» The next best opportunity that is foregone example working as sales manager salary 80000 rather than working as sales manager salary 75000<br>Opportunity cost of an activity is equal to the next best alternative which is sacrificed or given up in choosing a given alternative<br>Opportunity cost in economics can be defined as benefits or value missed out by business owners, small businesses, organization, investors, or an individual because they choose to accomplish or achieve anything else. It helps organizations in better decision-making by showing the lost opportunity because of investing over an alternative which can be anything like shares, stock market, real estate, land, services, etc. Generally, the financial report does not show the opportunity cost because it is not only about money or monetary cost. It is also associated with the lost time invested somewhere else which is providing utility. In simple terms, it is a concept in microeconomics that tells you about the output and potential opportunities foregone.

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