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Opportunity Cost

Opportunity cost describes the cost of a good, service or action relative to others. It is the next best alternative that you could have had if you did not choose the first.  For example, in an economy with only two goods A and B, if you choose good A, the opportunity cost is good B.

 

Anthony Carilli - The Economic Way of Thinking

 

Paul Cwik - The Foundational Difference Between Austrian Economics and the Mainstream

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