|
opportunity cost| In economics, that which has been forgone in order to achieve an objective. A family may choose to buy a new television set and forgo their annual holiday; the holiday represents the opportunity cost. |
| In decision-making, economists prefer to look at the opportunity cost because it requires a rational approach (all alternatives are examined), whereas an accountant's view of cost is more concerned with the way in which money is spent and the profit or loss that results. |
How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
?Sign in  |
|---|
|
|
|