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Another important microeconomics factor is an opportunity cost. Opportunity cost is the consideration of the value of making one decision over the other. It is the consideration of all the benefits that you forfeit when you choose one thing, and you leave another. The principle of opportunity cost can be in the form of funds tied up in a business, where the opportunity cost would be the amount of profit that would have been gained if the funds were in other alternative ventures. It could be in terms of time, where the time spent in one occupation could be time devoted to earning in other business ventures etc.
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