Law of Inc. opportunity cost

The law of opportunity cost is a fundamental economic concept that states that when a decision is made, the costs of any alternatives that are not chosen must also be taken into account. This law states that the cost of an opportunity foregone must be considered when making any economic decision. In other words, when faced with a decision, the cost of all the options which are not taken must be included in the overall cost of the chosen option. This cost is known as the opportunity cost. For an incorporated business, the law of opportunity cost takes on an extra significance. When running an incorporated business, any decision to choose one option over another will have a direct impact on the company’s bottom line. As such, the costs associated with choosing one option over another must be carefully weighed. This concept can be especially useful when evaluating different options for investments or for expanding a business. By understanding the potential cost of any missed opportunities, a business can make informed decisions which optimize their profits.