An opportunity cost (OC) is the value of the next best alternative foregone. Unlike accountants who merely count costs related to a purchase or a job or a decision, economists add the value of the opportunity cost to this accounting value. If I buy a $25 shirt, then my OC is the DVD I couldn't buy. If I teach economics for one hour, then my OC is the time I couldn't spend working out. Any good or service that has an OC is called an economic good (i.e. most everything we can see and buy around us). If there is no OC, then we have a free good, like seawater or (arguably) fresh air.
The concept of opportunity cost is vital for our arsenal of evaluative tools. Whenever we spend money, firms spend money, governments spend money, etc., an argument can be made through OC analysis that the money could have been better spent (or not spent/collected in the first place). Different people have different views, making this concept central to our study of economics, scarcity and rationing.
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