Opportunity Cost


Output: Press calculate


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Formula:Opportunity Cost = (Cost of Option A - Cost of Option B) / Benefit of Option A

Introduction to Opportunity Cost Calculator

Opportunity cost is the loss of potential gain from other alternatives when one alternative is chosen. This calculator helps to quantify the impact of choosing one option over another in terms of forgone benefits. The formula takes into account the cost of two options, Option A and Option B, and the benefit derived from Option A. The result is a measure of the relative cost of choosing one option over the other in terms of the benefits lost.

Parameter usage:

Example valid values:

Output:

Data validation

The cost and benefit parameters should be greater than zero. The cost of Option A should be greater than the cost of Option B.

Summary

This calculator computes the opportunity cost of choosing one option over another by considering the costs and benefits associated with each option. It does not depend on any specific unit of measurement.

Tags: Economics, Opportunity Cost, Decision Making