Opportunity cost


 

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Opportunity cost

The dollar value of income or profits lost due to committing resources to one opportunity in favor of another; lost profits from other opportunies which could have been pursued with the same resources.

Opportunity cost

The cost of something in terms of opportunity foregone. The opportunity cost to a country of producing a unit more of a good, such as for export or to replace an import, is the quantity of some other good that could have been produced instead.



Similar Matches

Growth opportunity

Growth opportunity

Opportunity to invest in profitable projects.


Opportunity cost of capital

Opportunity cost of capital

Expected return that is forgone by investing in a project rather than in comparable financial securities.


Investment opportunity set

Investment opportunity set

The universe of choices as to investments available to an individual or corporation.


Opportunity line

Opportunity line

Slope of a graph representing portfolios achieved by combining different levels of borrowing and lending with a single risky portfolio. Sometimes called investment opportunity set.


Portfolio opportunity set

Portfolio opportunity set

The expected retur../../finance-glossary/standard deviation pairs of all portfolios that can be constructed from a given set of assets.


Further Suggestions

Valuation Opportunity Cost
Opportunity costs
Opportunity set
Increasing opportunity cost
Opportunity Statement


 
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