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.

Businesses need to minimize the risk of failure and maximize the chances of success, which is why managers need facts and numbers to work with when developing business strategies and choosing options.

When an investor is analyzing and comparing options, opportunity cost reflects the potential benefits that the investor gives up by electing against some of the options. Read on to learn about the ...

Any business tries to use its resources efficiently. No one has unlimited resources, so it's critical that you make smart choices about using what you do have. Those decisions are influenced by what ...

Opportunity cost is the missed gain from not choosing a better option. Calculating future investment opportunity costs is complex and not always precise. Consider opportunity costs to optimize ...

Paid non-client promotion: Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our ...