{"id":653,"date":"2023-06-16T02:10:16","date_gmt":"2023-06-16T02:10:16","guid":{"rendered":"https:\/\/mudabicara.com\/en\/?p=653"},"modified":"2023-06-16T02:10:16","modified_gmt":"2023-06-16T02:10:16","slug":"what-is-opportunity-cost-definition-and-examples","status":"publish","type":"post","link":"https:\/\/mudabicara.com\/en\/what-is-opportunity-cost-definition-and-examples\/","title":{"rendered":"What is Opportunity Cost? Definition and Examples"},"content":{"rendered":"

Opportunity cost, a term that may be quite foreign to some people. <\/span>But for those who work in the field of economics or business, of course familiar with this term.<\/span><\/span><\/p>\n

In everyday life, it is not uncommon for us to encounter this term. <\/span>For example, when the budget is only enough to buy a bag, there are clothes at the same price.<\/span><\/span><\/p>\n

When you choose one of them, it means you have missed one opportunity after another.<\/span><\/span><\/p>\n

This condition is also an example of opportunity cost\u00a0 <\/span><\/span>in<\/span><\/span><\/em> \u00a0everyday life.<\/span><\/span><\/p>\n

For more details, we will discuss what opportunity costs are and examples in the following review.<\/span><\/span><\/p>\n

Read Also :What is On the Job Training? Meaning, Form, Purpose and Benefits<\/a><\/strong><\/span><\/pre>\n
Definition of Opportunity Cost<\/span><\/span><\/span><\/h2>\n
According to experts, there are two definitions of opportunity cost, including:<\/span><\/span><\/p>\n
1. According to the Financial Services Authority (OJK)<\/span><\/span><\/span><\/h3>\n
OJK defines opportunity cost as income that can be obtained from making choices about investment, other than those previously considered.<\/span><\/span><\/p>\n
Here\u00a0 <\/span><\/span>the opportunity cost<\/span><\/span><\/em> \u00a0arises because<\/span><\/span><\/p>\n
there are other alternatives that are more necessary, or it could also be due to the loss of some sources of funds.<\/span><\/span><\/p>\n
For example, when you plan to invest. <\/span>Initially, he intended to invest in deposits, but in the end he chose bonds.<\/span><\/span><\/p>\n
You are still investing as originally planned. <\/span>However, they lost the opportunity to have deposits, because they were more interested in bonds.<\/span><\/span><\/p>\n
2. According to Wikipedia<\/span><\/span><\/span><\/h3>\n
While quoted from\u00a0 <\/span><\/span>Wikipedia<\/span><\/span> , opportunity cost is the amount of money or costs incurred by people or companies to get what they want.<\/span><\/span><\/p>\n
This is of course different from the daily costs. <\/span>Because\u00a0 <\/span><\/span>the opportunity cost<\/span><\/span><\/em> \u00a0only appears when you miss one opportunity.<\/span><\/span><\/p>\n
If daily costs are related to tastes as well as different needs. <\/span>Opportunity cost is more due to factors that give rise to alternative choices.<\/span><\/span><\/p>\n
What causes opportunity costs to occur? <\/span>Usually due to limited sources of funds, or it could be due to scarcity.<\/span><\/span><\/p>\n
In essence, these costs arise when you have other options than the initial wants or needs.<\/span><\/span><\/p>\n
In simple terms, we can conclude that opportunity costs are costs that arise when you lose opportunities because you meet other needs.<\/span><\/span><\/p>\n
Read Also : What is a Credit Note? Definition, Function and Purpose<\/a><\/strong><\/span><\/pre>\n
Characteristics of Opportunity Cost<\/span><\/span><\/span><\/h2>\n
There are several things that characterize or characterize this opportunity cost. <\/span>The characteristics of opportunity cost include:<\/span><\/span><\/p>\n