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.
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What is 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.
:)
You are welcome!
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