Opportunity cost definition

Answer 1

The cost of an alternative that must be forgone in order to pursue a certain action. Put another way, the benefits you could have received by taking an alternative action.

Answer 2

Opportunity cost is the cost associated with choosing one opportunity over another. When you calculate opportunity cost you don't consider cost that are common to both alternatives.

Answer 3

When any cost is loss or forego due to acquiring of any of between mutual exclusive projects then that cost is called opportunity cost.