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 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.

Opportunity Cost Examples. Opportunity cost can also be considered as the value of the resource in its next best use or next highest-valued alternative.

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 ...

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 ...

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 ...

Outlay cost example Outlay cost example. Say a company wants to launch a manufacturing facility internationally. Getting the facility up and running will take 14 months and $40 million.