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

2404 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Describe the effects of an indirect tax (ex. sales tax) on the market for cigarettes.


What is Unemployment?


With reference to the extract, how price elastic would supply of nuclear energy be?


What is meant by comparative advantage?


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 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences