Opportunity cost is a concept in economics that refers to the value of the next best alternative that is forgone when making a choice — i.e., the cost of the best alternative that is not chosen.

Forbes contributors publish independent expert analyses and insights. Tim Maurer covers how personal finance is more personal than finance. May 05, 2024, 07:00am EDT Sunk cost, opportunity cost, and ...

Explore true cost economics, an approach that includes external costs like pollution in pricing, ensuring a more accurate ...

Everyday examples of opportunity costs might include choosing to commute using public transit for 80 minutes instead of driving for 40 minutes. You might save on the cost of gas but double the trip ...

Essentially, opportunity cost is the potential benefits or gains an investor, consumer or business misses out on when one alternative is chosen over another. Here are some key takeaways: You cannot ...

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