Question

Give feedback please. Thank you.

Opportunity cost is used in many ways in the business world. For example, the opportunity cost of hiring a local employee within a foreign country over sending an expatriate to work there. The opportunity cost of decisions with regard to team building; upsizing and downsizing; upgrading technology or using existing technology, etc. So, when we refer to opportunity cost in economics/trade, it may be applied to a plethora of circumstance. Looking at the opportunity cost of attending Berkeley College is one way that is easy to relate as it is the choice that you have taken. However, if you go through your day, you will find that you have taken many decisions that consider 2 or more options; thus encountering a situation where opportunity cost may be applied.  

Answer 1

Yes, opportunity is the value of the next best alternative that is foregone. It is an implied or an implied cost. Opportunity does not require monetary payment. A definition of opportunity cost would be helpful in your write up.

The opportunity cost of hiring a local employee in a foreign country over sending an expatriate would be the value foregone by not sending the expatriate.

The opportunity cost of attending Berkeley college is the salary foregone if a job had been taken up.