What is a opportunity cost?

Question

What is a opportunity cost?

Answer 1

It is something given up to get something else. For example, you give up time with friends to study, or you give up two CDs to get the gift for your girlfriend.

Answer 2

An "opportunity cost"  is the cost be it in money, time, resources, etc. or a combination of things, that you have to give in order to have the " opportunity" to possibly achieve something you desire.

For example, I just started a new business.  One of the "opportunity costs" that I had to give was my investment in the form of money for the opportunity to have the chance to build this business.  In other words you have to ask yourself what is it going to cost me to play this game?  Will it be my time? my money? will it mean me getting a part-time job to fund my new venture until it takes off?

I had never heard of this until it was explained at an internet marketing seminar.  I hope this helps