Evaluation
Note that opportunity cost is not the sum of the available alternatives when those alternatives are, in turn, mutually exclusive to each other – it is the value of the next best use. The opportunity cost of a city's decision to build the hospital on its vacant land is the loss of the land for a sporting center, or the inability to use the land for a parking lot, or the money which could have been made from selling the land. Use for any one of those purposes would preclude the possibility to implement any of the other.
Read more about this topic: Opportunity Cost
Famous quotes containing the word evaluation:
“Evaluation is creation: hear it, you creators! Evaluating is itself the most valuable treasure of all that we value. It is only through evaluation that value exists: and without evaluation the nut of existence would be hollow. Hear it, you creators!”
—Friedrich Nietzsche (1844–1900)
“Good critical writing is measured by the perception and evaluation of the subject; bad critical writing by the necessity of maintaining the professional standing of the critic.”
—Raymond Chandler (1888–1959)