Title: Why Is Opportunity Cost So Important in Business? | SB
Headings: Why Is Opportunity Cost So Important In Business?
Why Is Opportunity Cost So Important In Business?
The Importance of Opportunity Cost
The Implications for Small Businesses
Measuring the Most Effective Way to Spend
Widening Your Knowledge and Making Better Decisions
Enabling Better Management and Ownership
Enabling Better Leadership
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Content: by waiting for prices to fall, you would have lost out on these benefits. Professor Dan Ariely, a well-known author and scholar of behavioural economics, explains it more succinctly: " Money is all about opportunity cost. Every time you spend (it) on something, that's something you can't spend on something else." The Implications for Small Businesses
Opportunity cost is considered a fundamental principle in economics because it deals with the central problem of scarcity. Virtually everything has a finite value from a business perspective: time; money; labour; resources that you can acquire through a combination of the first three.