ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Opportunity cost is commonly defined as the next best alternative. Also, known as the alternative cost, it is the loss of gain which could have been gained if another alternative was chosen. It can also be explained as the loss of benefit due to a change in choice.

Detailed explanation-2: -The opportunity cost is the next best alternative foregone cost such that some units of one good are sacrificed to get the additional unit of other good such that the marginal rate of substitution is negative.

Detailed explanation-3: -Opportunity cost is a term in economics used to describe benefits that are lost when choosing one option over another. In short, it’s a value of the road not taken. Opportunity costs are easy to overlook, but understanding missed opportunities is crucial to better decision making in business.

Detailed explanation-4: -Opportunity Cost is the lost benefit, pleasure or satisfaction you sacrifice (in this case the joy of eating a hamburger) by not doing, eating or taking the next best alternative or choice.

Detailed explanation-5: -Opportunity cost is defined as the cost of the next best alternative foregone. It represents the sacrifices that people must make due to the scarcity of resources. Resources are limited but wants are unlimited, thus choices must be made.