Opportunity cost

The value of the best alternative forgone by a choice.

Key question

What gives something value?

Check your understanding

Find an example, an application and a limit. Explain the concept without using its name, then compare your explanation with a primary source.

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Claims to examine

  • Accounts of price formation make different assumptions about costs, preferences, information and institutions.

    Editorial claim · contestedExamine the source →

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Reading connections