ECONOMIC COOPERATION AND DEVELOPMENT PROCESSES

Abstract

Opportunity cost is closely related to the idea of time constraints. One can do
only one thing at a time, which means that, inevitably, one is always giving up
other things. The opportunity cost of any activity is the value of the next-best
alternative thing one may have done instead. Opportunity cost depends only on the
value of the next-best alternative. It does not matter whether one has five
alternatives or 5,000