ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Opportunity cost refers to what you have to give up to buy what you want in terms of other goods or services. When economists use the word “cost, ” we usually mean opportunity cost. The word “cost” is commonly used in daily speech or in the news.

Detailed explanation-2: -The opportunity cost of a choice is the value of the best alternative given up. Choices involve trading off the expected value of one opportunity against the expected value of its best alternative. The evaluation of choices and opportunity costs is subjective; such evaluations differ across individuals and societies.

Detailed explanation-3: -Opportunity Cost is the potential benefit that an individual or an entity loses by choosing one alternative over the other. Economic Cost looks at the overall profits or losses of choosing one alternative over the other in terms of resources, time and cost.

Detailed explanation-4: -What are opportunity cost and joint cost? The cost of a missed opportunity led by choosing a particular process or investment is referred to as opportunity cost. On the other hand, joint cost refers to the shared resources used to produce or purchase more than one product.