One of the most dramatic examples of opportunity cost is a 2010 exchange of 10,000 bitcoins for two large pizzas—at the time worth about $41. As of August 2024, those 10,000 bitcoins were worth ...

Opportunity cost is a concept in economics that refers to the value of the next best alternative that is forgone when making a choice — i.e., the cost of the best alternative that is not chosen.

Example Example of opportunity cost. Imagine a situation in which you paid $1 for a chance to choose between two mystery packages that each contained an unknown number of cookies.

Examples of Opportunity Cost in Finance. Just what opportunity cost looks like varies quite a bit from situation to situation. Below are a few examples of how financial opportunity cost can ...

Opportunity cost isn't just about saving money—it's about being efficient so that you can make better decisions that lead to better financial habits. Learn more.

Opportunity cost in economics and finance is defined as the cost of foregoing an alternative investment. See the calculation and examples of this analysis.

Essentially, opportunity cost is the potential benefits or gains an investor, consumer or business misses out on when one alternative is chosen over another. Here are some key takeaways: You ...

Example of Opportunity Cost: Someone foregoes going to the movies in order to study for a test and get a good grade. A movie's opportunity cost is the price it costs to watch it and the pleasure it ...

For example, a stock with a potential 10 percent annual return has more risk than investing in a CD with a sure-fire 5 percent annual return. So the opportunity cost of taking the stock is the CD ...

Opportunity cost examples. Here are some more examples where opportunity cost shows up in different ways, not all of which have a clear formula: A business owner wants to add a new product to the ...