Opportunity cost

opportunity costshidden costhidden costsalternative costalternative-costbenefits of using those funds for other health programscost of educationdiverting resources from investment for the futureeconomic costshidden
In microeconomic theory, the opportunity cost, also known as alternative cost, of making a particular choice is the value of the most valuable choice not taken.wikipedia
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Economics

economiceconomisteconomic theory
Opportunity cost is a key concept in economics, and has been described as expressing "the basic relationship between scarcity and choice."
Opportunity cost is the economic cost of production: the value of the next best opportunity foregone.

Friedrich von Wieser

imputation theoryWieser
The term was first used in 1914 by Austrian economist Friedrich von Wieser in his book Theorie der gesellschaftlichen Wirtschaft (Theory of Social Economy). The idea had been anticipated by previous writers including Benjamin Franklin and Frédéric Bastiat.
Wieser is renowned for two main works, Natural Value, which carefully details the alternative-cost doctrine and the theory of imputation, and his Social Economics (1914), an ambitious attempt to apply it to the real world.

Frédéric Bastiat

Bastiatblock out the sunFrederic Bastiat
The term was first used in 1914 by Austrian economist Friedrich von Wieser in his book Theorie der gesellschaftlichen Wirtschaft (Theory of Social Economy). The idea had been anticipated by previous writers including Benjamin Franklin and Frédéric Bastiat.
Bastiat developed the economic concept of opportunity cost and introduced the parable of the broken window.

Implicit cost

imputed
Implicit costs (also called implied, imputed or notional costs) are the opportunity costs that are not reflected in cash outflow but are implied by the choice of the firm not to allocate its existing (owned) resources, or factors of production, to the best alternative use.
In economics, an implicit cost, also called an imputed cost, implied cost, or notional cost, is the opportunity cost equal to what a firm must give up in order to use a factor of production for which it already owns and thus does not pay rent.

Parable of the broken window

broken window fallacyfallaciesWhat is Seen and What is Unseen
Bastiat's 1848 essay "What Is Seen and What Is Not Seen" used opportunity cost reasoning in his critique of the broken window fallacy, and of what he saw as spurious arguments for public expenditure.
The parable seeks to show how opportunity costs, as well as the law of unintended consequences, affect economic activity in ways that are unseen or ignored.

Cost of capital

cost of debtopportunity cost of capitalrequired return
Opportunity cost of capital
In other words, the cost of capital is the rate of return that capital could be expected to earn in the best alternative investment of equivalent risk; this is the opportunity cost of capital.

Production–possibility frontier

marginal rate of transformationproduction possibilities frontierproduction possibility frontier
Opportunity costs are not restricted to monetary or financial costs: the real cost of output forgone, lost time, pleasure or any other benefit that provides utility should also be considered an opportunity cost.
A PPF illustrates several economic concepts, such as scarcity of resources (the fundamental economic problem that all societies face), opportunity cost (or marginal rate of transformation), productive efficiency, allocative efficiency, and economies of scale.

There ain't no such thing as a free lunch

no free lunchTANSTAAFLgetting something for nothing
There ain't no such thing as a free lunch
The free-market economist Milton Friedman also increased its exposure and use by paraphrasing it as the title of a 1975 book, and it is used in economics literature to describe opportunity cost.

Trade-off

tradeofftrade offtrade-offs
Trade-off
In economics, a trade-off is commonly expressed in terms of the opportunity cost of one potential choice, which is the loss of the best available alternative.

Budget constraint

budget lineconstraintsendowments
Budget constraint
Opportunity cost

Economic value added

EVAeconomic value-addeconomic values
Economic value added
Opportunity cost

Fear of missing out

FOMOfear of a better optionfear of losing stature
Fear of missing out
Opportunity cost

Time management

task listto-do listtime-management
Time management
Opportunity cost

Best alternative to a negotiated agreement

BATNAbest alternative to negotiated agreement
Best alternative to a negotiated agreement
Opportunity cost

Microeconomics

microeconomicmicroeconomic theoryprice theory
In microeconomic theory, the opportunity cost, also known as alternative cost, of making a particular choice is the value of the most valuable choice not taken.

Value (economics)

valueeconomic valuemonetary value
In microeconomic theory, the opportunity cost, also known as alternative cost, of making a particular choice is the value of the most valuable choice not taken.

Mutual exclusivity

mutually exclusivemutually exclusive eventsexclusion
When an option is chosen from two mutually exclusive alternatives, the opportunity cost is the "cost" incurred by not enjoying the benefit associated with the alternative choice.

New Oxford American Dictionary

The New Oxford American DictionaryesquivalienceNew Oxford American
The New Oxford American Dictionary defines it as "the loss of potential gain from other alternatives when one alternative is chosen."

Scarcity

scarcescarce resourcespaucity
Opportunity cost is a key concept in economics, and has been described as expressing "the basic relationship between scarcity and choice."

Money

monetaryspeciecash
Opportunity costs are not restricted to monetary or financial costs: the real cost of output forgone, lost time, pleasure or any other benefit that provides utility should also be considered an opportunity cost.

Real versus nominal value (economics)

inflation-adjustednominalnominal value
Opportunity costs are not restricted to monetary or financial costs: the real cost of output forgone, lost time, pleasure or any other benefit that provides utility should also be considered an opportunity cost.

Utility

utility functionutility theoryutilities
Opportunity cost is a key concept in economics, and has been described as expressing "the basic relationship between scarcity and choice." Opportunity costs are not restricted to monetary or financial costs: the real cost of output forgone, lost time, pleasure or any other benefit that provides utility should also be considered an opportunity cost.

Austria

🇦🇹AUTAustrian
The term was first used in 1914 by Austrian economist Friedrich von Wieser in his book Theorie der gesellschaftlichen Wirtschaft (Theory of Social Economy). The idea had been anticipated by previous writers including Benjamin Franklin and Frédéric Bastiat.

Economist

economistseconomicsgovernment economist
The term was first used in 1914 by Austrian economist Friedrich von Wieser in his book Theorie der gesellschaftlichen Wirtschaft (Theory of Social Economy). The idea had been anticipated by previous writers including Benjamin Franklin and Frédéric Bastiat.

Benjamin Franklin

FranklinBen FranklinFranklin, Benjamin
The term was first used in 1914 by Austrian economist Friedrich von Wieser in his book Theorie der gesellschaftlichen Wirtschaft (Theory of Social Economy). The idea had been anticipated by previous writers including Benjamin Franklin and Frédéric Bastiat.