Question

What are opportunity costs in general? What are the opportunity costs for entrepreneurs?

Answer 1

Opportunity cost refers to the cost which you actually not have to paid rather than it is arise or calculate to the most suitable options

For example you got two offer letter from company A and company B

Company A offer you $5000 per month and company B offers yoy $5500

If you choose A opportunity cost will be $5500, if you choose B then the opportunity cost will be $5000

In other words opportunity cost refers to the opportunity you left.

Same apply in entrepreneurship they have various options but they only can choose only one idea other ideas become opportunity cost.

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