ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Opportunity cost is the value of what you lose when choosing between two or more options. Every choice has trade-offs, and opportunity cost is the potential benefits you’ll miss out on by choosing one direction over another.

Detailed explanation-2: -That is, opportunity cost is the loss of potential gain from other alternatives when one alternative is chosen. In economics, opportunity cost represents the relationship between scarcity and choice.

Detailed explanation-3: -Simply stated, an opportunity cost is the cost of a missed opportunity. It is the opposite of the benefit that would have been gained had an action, not taken, been taken-the missed opportunity. This is a concept used in economics.

Detailed explanation-4: -Opportunity cost can be positive or negative. When it’s negative, you’re potentially losing more than you’re gaining. When it’s positive, you’re foregoing a negative return for a positive return, so it’s a profitable move.

Detailed explanation-5: -Opportunity cost refers to the loss of other alternatives, when one alternative is chosen over others. For example, given a $1 bill, a person may buy an apple or an orange or a banana. He can not buy all three or any two of it. Thus, he has to chose among buying apple, orange and banana.