What is an example of opportunity cost?

Below is an example of opportunity cost that accounts for other factors beyond the monetary gains and losses: Sometimes, you consider more than just the money you spend when calculating opportunity cost. For example, suppose you choose to go to a movie with your friends and spend $20 on the tickets and popcorn.

What is the difference between opportunity cost and opportunity cost?

A student spends three hours and $20 at the movies the night before an exam. The opportunity cost is time spent studying and that money to spend on something else. A farmer chooses to plant wheat; the opportunity cost is planting a different crop, or an alternate use of the resources (land and farm equipment).

How much does an opportunity cost?

With that choice, the opportunity cost is 4%, meaning you would forgo the opportunity to earn an additional 4% per year on your funds. Here are some more examples: A business owner wants to add a new product to the lineup. It requires an upfront investment of $1,000 to build and market.