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Can you please explain to me what is an opportunity cost with the example?
I’m struggling with this in the relevant cost chapter because I could not understand the reason behind why we include that as a relevant cost in the calculation.All I know is that ‘opportunity cost is related to a work that we have discontinued to work on another project’. Is it right?
If you can help me how would you understand the opportunity cost.
An opportunity cost is income lost as a result of doing something.
I do explain this (with examples) in Chapter 9 of our free lecture notes and in the free lectures working through this chapter.
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