ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In microeconomic theory, the opportunity cost of a choice is the value of the best alternative forgone where, given limited resources, a choice needs to be made between several mutually exclusive alternatives.

Detailed explanation-2: -Opportunity cost is the value of the best alternative forgone in making any choice. The opportunity cost to you of reading the remainder of this chapter will be the value of the best other use to which you could have put your time.

Detailed explanation-3: -The cost of the next best alternative foregone is termed as opportunity cost.

Detailed explanation-4: -Opportunity cost measures the cost of a choice made in terms of the next best alternative foregone or sacrificed. The opportunity cost of deciding not to work an extra ten hours a week is the lost wages given up.

Detailed explanation-5: -“Opportunity cost is the value of the next-best alternative when a decision is made; it’s what is given up, ” explains Andrea Caceres-Santamaria, senior economic education specialist at the St.