Opportunity cost refers to the opportunity for an enterprise to give up another business activity in order to engage in one business activity, or to give up another income when using a certain resource to obtain a certain income. The income or income of another business activity is the opportunity cost of the business activity. Through the opportunity cost analysis, enterprises are required to correctly choose business projects in their operations, and the actual benefits must be greater than the opportunity cost, so that limited resources can be optimally allocated.

Take the following example as a calculation example:

When farmers get more land, if they choose to raise pigs, they can't choose to raise other poultry. The opportunity cost of raising pigs is the gain of giving up raising chickens or ducks. Suppose you can get 90 thousand yuan for raising pigs, 70 thousand yuan for raising chickens and 80 thousand yuan for raising ducks, then the opportunity cost of raising pigs is 80 thousand yuan, the opportunity cost of raising chickens is 90 thousand yuan, and the opportunity cost of raising ducks is 90 thousand yuan.

Choose between reading and studying in the library and enjoying the happiness brought by TV series. Then the opportunity cost of reading and learning in the library is to enjoy the happiness brought by TV dramas less, while the opportunity cost of enjoying TV dramas is to lose what you get from reading and learning in the library.

If a person owns a house, then the opportunity cost of choosing to live by himself is the income that can be earned by renting the house to others. Because this opportunity cost does not involve actual money transactions, it can also be a hidden cost.

Tips: The above information is for reference only and does not represent any suggestions.

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