Introduction
When deciding to procure a service or a product, an individual or a company evaluates the opportunity cost. One thing is bought at the expense of another. Since resources are limited and needs are unlimited, people usually purchase products that will give them the greatest value for the available resources. Opportunity cost can therefore be defined as the loss of potential gain from the second best sacrificed alternative when one alternative is chosen. For instance one has $800 which he can use to buy a house or a vitz as those needs top his priority list. If he decides to buy a house, then he ...
