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. 

Answered by Varad H. Economics tutor

1958 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

What are the causes and effects of globalisation?


Explain the impact of incentives on the behaviour of economic agents and resource allocation.


Evaluate the view that attempts by governments to eliminate market failure by intervening in markets for public goods and merits goods will inevitably lead to government failure.


How does increasing interest rates affect inflation?


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2024

Terms & Conditions|Privacy Policy