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". 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.
Relevance for urban planner
This is a help page defining a difficult term used in other pages such as "The economics of crime".
Footnotes and references
- source: Wikipedia
- Brand, S. and R. Price (2000): The economic and social costs of crime. Home Office Research Study 217.