THE REAL TRADE-OFF BETWEEN OPPORTUNITY COST AND UNCERTAIN PROFIT

Abstract

The literatures have shown that there is a trade-off between the uncertainty and the profit in economic parlance. The empirical studies have shown the existence of the trade-off between the two. Opportunity cost is the other economic fact which is co studied with the uncertainty and profit. The opportunity cost is the cost which is exposed to the uncertainty and profitable avenues. This study shows that not only there exists a relation between the opportunity cost, uncertainty and profits but there also exists a trade-off between them. The study shows that the opportunity cost is always of the real consideration when determining the impact of the uncertainty over the profits.