Should Opportunity Cost Be High or Low?

Opportunity costs in general have to do with the amount of cost that is involved by making some sort of economic decision. Opportunity costs may be somewhat high, indicating that it is necessary to forgo or give up a significant amount of resources in order to take advantage of a given opportunity.

Is increasing opportunity cost good?

Lesson 5: The law of increasing opportunity cost: As you increase the production of one good, the opportunity cost to produce the additional good will increase. First, remember that opportunity cost is the value of the next-best alternative when a decision is made; it's what is given up.

Is a low or high opportunity cost better?

In the case of comparative advantage, the opportunity cost (that is to say, the potential benefit which has been forfeited) for one company is lower than that of another. The company with the lower opportunity cost, and thus the smallest potential benefit which was lost, holds this type of advantage.