Question

what is opportunity cost?

Answer 1

Answer :

Opportunity cost of something is basically the cost which you incur when you give up the next best alternative in order to get that something. Let's say you have the option of pursuing further education after college or taking a job after college which gives you a salary. Now when you pursue further education you basically give up the opportunity of doing the job. Thus the opportunity cost of you pursuing further education is basically the salary you could have earned from the job but you gave up in order to pursue further education.