ocr: Opportunity cost ofcapital An opportunity cost is a concept which recognises that by using a scarce eswuice in one way, it: may be lecessary to torego some other profitable alternative. In the case of money tied up as stock, we should recognise that some other profitableinvestment is being given up. (e-g- the money that would accrue from allowing the money to earn interest in a savings bank account)
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