Opportunity cost

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April 25, 2025 at 5:31 am #716958
Nihalebrahim
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Is opportunity the full value of the benefit foregone or net benefit foregone?

For example Option A – 4,000 profit and Option B – 4,500 profit. Is the opportunity cost of choosing A 4,500 or just 500?
April 25, 2025 at 10:16 am #716964
mrjonbain
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In your example it would be 500. It’s the Net benefit foregone.
April 25, 2025 at 10:16 am #716965
mrjonbain
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Hope this helps.
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