Can You Explain Opportunity Cost With Examples?

The forgone cost is known as opportunity cost. It is also known as the value of the best available alternative which can be resulted after making a decision. Opportunity cost is very important in decision making of the companies because companies need to select the best alternatives available to them and if a company is not able to achieve it's aim then it becomes the opportunity cost for the company. In other words, opportunity cost is resulted when the company selects one alternative over another.

For example, if you have two options to start a business; either to go for a gift shop or to start a small food stall. If you select one option then the other will become your opportunity cost.

Opportunity cost is the next best alternative forgone. For example if a government plans to build hospital and a school  in a rural area it has to give up something. Because as we know resources are scarce and for that choice has to be made. So if government plans to go a head with school then its giving up hospital and thus it becomes the opportunity cost.
That is it gives the benefit it could have enjoyed by constructing hospital.

Cost is usually measured in monetary terms like wages but there is another kind of cost which is cost of allocation resources to a particular use. In simple layman terms opportunity cost is the cost of having one thing and not the other. For instance I have one dollar in which I can either buy a can of Pepsi of or a bag of chips. If I chose to buy one can of Pepsi my opportunity cost would be the bag of chips. Because resources are scarce and people's wants are unlimited, we have to evaluate our opportunity cost when making decisions. In considering scarcity and choice economists also make use of opportunity cost. This is a very important concept in economics. With the limited supply of economic resource a society has a wide variety of options as to the quantity of goods and services that it may produce. It may produce more chips and fewer aircrafts and more rice and less grain. Every country faces the opportunity cost of important facilities like health and education, defence and environment.

What is the opportunity of cost of producing sunglasses in Eastland if you have 100 umbrellas and 120 - 150 sunglasses.  Can you show this as a fraction?

Opportunity cost is the cost in which your decisions cost you in by relinquishing other choice. In brief it is simply the cost of effect of your decision

Opportunity cost is the cost in choosing an option over another one in terms of cost-benefit.

It is a cost  which the buyer want to pay  and seller demand.it is the aggregable  amout of both parties

Opportunity cost is the next-best choice available to someone who has picked between several mutually exclusive choices.It is a key concept in economics. It is a calculating factor used in mixed markets which favour social change in favour of purely individualistic economics.

Explain the term opportunity cost