The opportunity cost of an action is always equal to: the time you give up to undertake the action. the money you give up to undertake the action. the next-best alternative for the resources used to undertake the action. the things you could have done instead of the action you chose to undertake

the next-best alternative for the resources used to undertake the action.

Explanation:

That's the most complete definition.

Is important to understand that opportunity cost take the best alternative.

And associate the alternative for an specific resource.

For example, if you have your own project as self-employee

and you have two job offer of 40,000 and 60,000

the opportunity cost is 60,000 which is the best alternative for the labor resources

If you are also using a space that could be rented for 10,000 That potential rent is also part of the opportunity cost,

So the total opportunity cost will be 70,000

60,000 for the labor resourse

and 10,000 for the rent resource

The next-best alternative for the resources used to undertake the action.

Explanation:

The opportunity cost of an action refers to the benefits that a person misses out on when he chooses a particular alternative over another one. This is sometimes difficult to calculate, as it can be hard to establish what the missed opportunities look like. However, it is important to know them, as opportunity costs can allow businesses and businessmen make better decisions.