OPPORTUNITY COST


Meaning of OPPORTUNITY COST in English

In economic terms, the opportunities forgone in the choice of one expenditure over others.

For a consumer with a fixed income, the opportunity cost of buying a new dishwasher might be the value of a vacation trip never taken or several suits of clothes unbought. The concept of opportunity cost allows economists to examine the relative monetary values of various goods and services.

Britannica Concise Encyclopedia.      Краткая энциклопедия Британика.