OPPORTUNITY COST

This refers to the difference between the benefit of taking a certain course of action or choosing one <a href=»http://wiki.domaincloud.app/index.php?seccion=Contenido&amp;id=2012C0869″>option</a> and the forgone benefit or «<a href=»http://wiki.domaincloud.app/index.php?seccion=Contenido&amp;id=2013C01170″>loss</a>» of taking another course of action or choosing a different <a href=»http://wiki.domaincloud.app/index.php?seccion=Contenido&amp;id=2012C0869″>option</a>. The New Oxford American Dictionary defines this term outside of economics as «the <a href=»http://wiki.domaincloud.app/index.php?seccion=Contenido&amp;id=2013C01170″>loss</a> of potential gain from other alternatives when one alternative is chosen».

If you have made the best choice possible, the <a href=»http://wiki.domaincloud.app/index.php?seccion=Contenido&amp;id=2014C01320″>opportunity cost</a> would be not receiving the benefit of what would have been gained by making another choice. However, in this case, having made the best choice, you won&acute;t have to incurr any <a href=»http://wiki.domaincloud.app/index.php?seccion=Contenido&amp;id=2013C0992″>cost</a> and you can compare the benefit you have received (greater) to the benefit you would have received (less). In investing, an <a href=»http://wiki.domaincloud.app/index.php?seccion=Contenido&amp;id=2014C01320″>opportunity cost</a> is the difference in the return-on-<a href=»http://wiki.domaincloud.app/index.php?seccion=Contenido&amp;id=2012C0861″>investment</a> made with the possible return-on-<a href=»http://wiki.domaincloud.app/index.php?seccion=Contenido&amp;id=2012C0861″>investment</a> that could have been made by investing somewhere else, with another <a href=»http://wiki.domaincloud.app/index.php?seccion=Contenido&amp;id=2013C01007″>company</a> or with a greater/lesser amount of <a href=»http://wiki.domaincloud.app/index.php?seccion=Contenido&amp;id=2012C0841″>money</a>.