Opportunity Cost=Time is Money

its the alternative use of your cash and time.it means for that every hour we spend at one job we could spend differently doing something else(i.e watching tv or sleeping). Basically opportunity cost applies to all aspects of our lives whenever we need to make a decision involving our time, money, labout etc.If a second choice turned out to be a better one that the one we have chosen-we call it forgone opportunity.It is a major issue in business since you need to know which decisions are more profitable.I.e the owner of the farm have 100.000€ to spend.He can either buy more advanced fertilizers in his hope for a better harvest next year. He could also put the money into a bank account where it could earn 5 per cent interest a year. Therefore the opportunity cost of the investment is 5000 €-the amount forgone by investing in the fertilizers.