Explain The Meaning Of Opportunity Cost?

user image

Muskan Anand

2 years ago

This cost refers to the value of sacrifice made or benefit of opportunity foregone in accepting an alternative course of action. For example, a firm financing its expansion plans by withdrawing money from its bank deposits. In such a case the lots of interest on the bank deposit is the opportunity cost for carrying out the expansion plant.

Recent Doubts

Close [x]