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Opportunity Cost

Define the term "opportunity cost." Now that you have a definition of opportunity cost weigh the positives and negatives of taking a leave of absence from work and moving out of town to attend college full time, or maintaining your job while attending college. What is your conclusion?

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Opportunity cost is the cost of the next best alternative. It is the amount you would give up by not indulging in an activity and choosing to indulge in something else. Opportunity cost or economic opportunity loss is the value of the next best alternative foregone as the result of making a decision. The next best thing that a person can engage in is referred to as the opportunity cost of doing the best thing and ignoring the next best thing to be done. Opportunity ...

Solution Summary

Overall, an excellent response with a great amount of detail. The solution is very easy to understand and very well explained. The concept of opportunity cost is important to understand for any economics or finance related course and this posting does a great job of explaining that concept.