Economics Interview Question:

What is an opportunity cost?

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Opportunity cost is cost of an alternative that must be forgone in order to pursue a certain action. Put another way, the benefits you could have received by taking an alternative action. Concept of opportunity cost is central to economics because it reminds us that everyday we each have choices to make and for each choice, that we make there is a second best option that we forego{that we pass up}
Submitted by: Administrator