What is Opportunity Cost?

Opportunity cost is defined as the next best alternative foregone. An example of this is:  Someone gives up going to see a movie to study for a test in order to get a good grade. The opportunity cost is the cost of the movie and the enjoyment of seeing it. This is a key element of microeconomics - which is the study of how individuals and businesses make decisions. 

VH
Answered by Varad H. Economics tutor

2535 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Explain 4 key sources of monopoly power.


Evaluate whether higher government spending will always increase inflation.


How does a natural monopoly differ from the more general monopoly market structure we're used to?


How does a firm maximise revenue (linear revenue curves)?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning