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Opportunity Cost
Views: 305 Opportunity is a simple but a very important concept because it allows you to make wiser decisions. The cost of doing something is also the cost of giving up the alternative. Farmer Jim owns 100 acres of land. If he grows corn on the land than he cannot grow soybean on the land. At harvest time, if the price of corn is more profitable than soybean, he would earn more money. If the price of soybean is more profitable than corn, he will earn less money. The cost of choosing one option is to give up the opportunity …
