In Economics, what is referred to as the most valuable forgone alternative?
Answer:
Opportunity Cost, from the Concise Encyclopedia of Economics.
When economists refer to the "opportunity cost" of a resource, they mean the value of the next-highest-valued alternative use of that resource. If, for example, you spend time and money going to a movie, you cannot spend that time at home reading a book, and you can't spend the money on something else. If your next-best alternative to seeing the movie is reading the book, then the opportunity cost of seeing the movie is the money spent plus the pleasure you forgo by not reading the book.
are you talking about opportunity cost?
When you are trying to figure out economic profit of doing something that requires time/money/resources, you should compare the expected returns to the best alternative use of time/money/resources.
Opportunity Cost?
I b elieve it is the oppotunity cost - what you are giving up in order to go with your best solution.
The last thing you decided not to buy before you bought whatever it is you bought.
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