Opportunity Cost. The financial returns given up by not putting a factor of production, particularly capital, to a different use.
For consumers, the opportunity cost is value of something given up to pursue something else.
An example of opportunity cost would be going to the movies. The cost of going to the movie is $9.00 or whatever amount of money your movie theater charges. The opportunity cost would be something else you could have done with that money or that time, such as renting three movies or reading a book.
From: Society for Range Management. 1998. Glossary of terms used in range management, fourth edition. Edited by the Glossary Update Task Group, Thomas E. Bedell, Chairman. Used with permission.
