<p>We don't use all possible opportunity costs. We only use the cost of forgoing the next-best-alternative. </p>

CC BY-SA 4.0
2018-12-17T21:08:10.957Z
There are two mistakes in your answer: First, opportunity cost is defined as the *value* (not the cost) of the next best alternative. Second, the cost (or value, for that matter) of the other (lower-ranked) alternatives are not opportunity cost.
Herr K.
CC BY-SA 4.0
2021-07-05T16:58:38.643Z
@HerrK. Good distinction.
kleinerde
CC BY-SA 4.0
2018-12-17T19:04:49.897Z
2018-12-17T19:04:49.897Z
kleinerde
<p>I'm told that forgone job opportunities are implicit costs, to be included in calculating economic profit, but I can't seem to see how I could list and consider many different forgone opportunities. My question here is how do we do so?</p>

<p>For example, if I have a piece of land or big city real estate, there could be a great many different uses for it. If I considered each of these forgone opportunities an implicit cost, I would think the expression of my economic costs would be useless to me. </p>

<p>So I suspect that either I'm suffering from an oversimplified ECON101 explanation of implicit and opportunity costs or simply an incorrect one. Any references would be appreciated. </p>

CC BY-SA 4.0
2018-12-17T23:05:25.547Z
See this https://www.econlib.org/library/Topics/College/opportunitycost.html
london
<microeconomics>
Multiple Forgone Job Opportunities and Economic Profit
kleinerde
# Multiple Forgone Job Opportunities and Economic Profit

(Asked by: username_0 on 2018-12-13)

I'm told that forgone job opportunities are implicit costs, to be included in calculating economic profit, but I can't seem to see how I could list and consider many different forgone opportunities. My question here is how do we do so?

For example, if I have a piece of land or big city real estate, there could be a great many different uses for it. If I considered each of these forgone opportunities an implicit cost, I would think the expression of my economic costs would be useless to me.

So I suspect that either I'm suffering from an oversimplified ECON101 explanation of implicit and opportunity costs or simply an incorrect one. Any references would be appreciated.

**Tags:** microeconomics
> **Comments:**
> **username_1**: See this https://www.econlib.org/library/Topics/College/opportunitycost.html  

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## 1 answers

### Answer by username_0 on 2018-12-17. Score: -1

We don't use all possible opportunity costs. We only use the cost of forgoing the next-best-alternative.

> **Comments:**
> **username_2**: There are two mistakes in your answer: First, opportunity cost is defined as the *value* (not the cost) of the next best alternative. Second, the cost (or value, for that matter) of the other (lower-ranked) alternatives are not opportunity cost.  
> **username_0**: @HerrK. Good distinction.  

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