Difference between revisions of "Opportunity cost"
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=Opportunity cost= |
=Opportunity cost= |
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| − | '''Opportunity cost''' is a central concept in economics. It can be defined as any activity measured in terms of the value of the next best alternative foregone (that is not chosen). It is the sacrifice related to the second best choice available to someone, or group, who has picked among several mutually exclusive choices.<ref name="ftn101"> [[wikipedia:opportunity cost|source: wikipedia]]</ref>. The concept of opportunity cost allows economists "to value the human, physical and financial resources that will be 'freed up' for potential alternative uses", for example when a crime is prevented<ref>Brand, S. and R. Price (2000). ''The economic and social costs of crime''. Home Office Research Study 217.</ref>. |
+ | '''Opportunity cost''' is a central concept in economics. It can be defined as any activity measured in terms of the value of the next best alternative foregone (that is not chosen). "It is the sacrifice related to the second best choice available to someone, or group, who has picked among several mutually exclusive choices".<ref name="ftn101"> [[wikipedia:opportunity cost|source: wikipedia]]</ref>. The concept of opportunity cost allows economists "to value the human, physical and financial resources that will be 'freed up' for potential alternative uses", for example when a crime is prevented<ref>Brand, S. and R. Price (2000). ''The economic and social costs of crime''. Home Office Research Study 217.</ref>. |
==Related subjects== |
==Related subjects== |
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Revision as of 14:23, 22 August 2012
Opportunity cost
Opportunity cost is a central concept in economics. It can be defined as any activity measured in terms of the value of the next best alternative foregone (that is not chosen). "It is the sacrifice related to the second best choice available to someone, or group, who has picked among several mutually exclusive choices".[1]. The concept of opportunity cost allows economists "to value the human, physical and financial resources that will be 'freed up' for potential alternative uses", for example when a crime is prevented[2].
Related subjects
- The economic effects of crime and terrorism
- Cost of crime migitation
- The economics of criminal& terrorist behaviour
Footnotes and references
- ↑ source: wikipedia
- ↑ Brand, S. and R. Price (2000). The economic and social costs of crime. Home Office Research Study 217.
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