What is opportunity cost in business

Opportunity cost is the choosing of right venture to invest from the available business ventures.

Among ventures to be considered one must be of benefits than others.Consider the following examples:

Suppose the business wants certain services such as cleaning services within the business,then the business can consider either to employ staffs to do cleaning services at the business or either outsource the cleaning services for other company to come and do the cleaning services.

To determine the opportunity cost in the above example,then the business will consider the total costs of employing staffs within the business to do the cleaning services verses the cost of outsourcing other company to do the cleaning services for the business.

So between employing staffs and outsourcing the cleaning services,then opportunity cost will be achieved when one has lower cost than the other.Suppose employing staffs to do cleaning services is cheaper then
the opportunity cost is for the business to employ staff.

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