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Natalka [10]
3 years ago
13

How does "cost" differ from "opportunity cost"?

Social Studies
1 answer:
Montano1993 [528]3 years ago
6 0
<span>Opportunity cost concept is very important to the view of costs of economists. It is defined as the worth or value of a forgone activity or alternative when another item is chosen. It is a relative cost of one alternative in terms of the next best alternative. It is a vital economic concept which finds application a wide range of business decisions. Decision –making is usually overlooked by opportunity cost. Opportunity costs should often subjectively estimated by decision-makers. </span>
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