Opportunity cost is the amount of increase or decrease in revenue that would result from the best available alternative to the proposed use of cash or its equivalent.

Question

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Opportunity cost refers to the benefit that is missed or given up when an investor, individual, or business chooses one alternative over another; it is not solely about the increase or decrease in revenue but encompasses all potential benefits from the best alternative forgone.

Opportunity Cost Is the Amount of Increase or Decrease in Revenue