Opportunity cost
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In microeconomic theory, the opportunity cost, also known as alternative cost, is the value (not a benefit) of the choice of a best alternative cost while making a decision. A choice needs to be made between several mutually exclusive alternatives; assuming the best choice is made, it is the "cost" incurred by not enjoying the benefit that would have been had by taking the second best available choice.
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See also
- Budget constraint
- Economic value added
- Fear of missing out
- Opportunity cost of capital
- Parable of the broken window
- Production-possibility frontier
- There Ain't No Such Thing As A Free Lunch
- Time management
- Trade-off
- Best alternative to a negotiated agreement
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