opportunity cost

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  • noun

Words related to opportunity cost

cost in terms of foregoing alternatives

References in periodicals archive ?
Next time you're considering an investment to grow your business, consider the opportunity cost of your current website and marketing programs, and be sure to address these needs with your provider.
As with self-dealing, operating under an opportunity cost conflict (that is, exercising board power with incentives to redeploy capital and service) is not itself a breach of fiduciary duty.
The total cost of buying non-house assets, such as automobiles and boats, without using home equity loans, is often calculated by subtracting the terminal value of the asset from the sum of down payments, subsequent monthly loan payments, and the opportunity cost of the initial payments, over the entire loan payment periods which is assumed to be the same as the lease period.
46, the average cost of rearing - including fixed and variable costs, interest on capital and opportunity costs - was PS1,819.
Opportunity cost is widely considered to be a fundamental concept in economics.
In addition, because incremental cost doesn't cover average cost, sellers must cover all fixed costs with external sales; thus, an arbitrary opportunity cost is implicitly added to internal transactions.
Indeed, the total equity valuation range associated with the financing opportunity cost of just these two real estate lease variables spans nearly 84% of the base-case total valuation.
This model simplifies the farmland valuation problem and expresses current farmland values as a function of current income produced by farmland, the opportunity cost of capital or discount rate, and the constant rate at which income is expected to grow in the future, as shown below:
However, gas started to become scarce in the 1990s, limiting expansion of the petrochemical sector and introducing a clear opportunity cost to using gas for power generation.
This total cost definition violates the opportunity cost principle of economic decision making by including sunk costs and as such, commits the proverbial problem of "adding apples and oranges".
The opportunity cost of everything we do is the value foregone from having less time and resources to do other things.
We are realising now that the cost escalation is opportunity cost.
The difficulties in forecasting M2 spurred a number of publications examining whether the deterioration in the M2 equation's forecasting ability was temporary, or whether more fundamental factors-such as flaws in the construction of the M2 aggregate, the opportunity cost, or both--were at work.
Otherwise, this is not just a lost opportunity; it's an opportunity cost that puts a great burden on future residents, occupants and tenants.
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