PRESENTATION OUTLINE
Opportunity cost
The added cost of using resources(as for production or speculative investment) that is different between the actual value.
In other words....
A benefit, profit, or value of something that must be given up to acquire or achieve something else.
Example:
number of alternatives of how to spend my Friday night: go to the movies, stay home and watch the baseball game on TV, or go out for coffee with friends. If I choose to go to the movies, my opportunity cost of that action is what I would have chose if I had not gone to the movies - either watching the baseball game or going out for coffee with friends. Note that an opportunity cost only considers the next best alternative to an action, not the entire set of alternatives.
Every time you make a choice, there is a certain value you place on that choice. You might not know it or think about it, but every choice has a value to you. When you choose one thing over another, you're saying to yourself, I value this more than another choice I had.
The opportunity cost of a choice is what you gave up to get it.
