Now that you understand opportunity cost, you understand economic cost. Most economists use these two terms to mean the same thing.

Be careful, however, some economists use opportunity cost to refer only to those indirect costs that arise because of forgone opportunities. Just be sure when you're taking a test or speaking to your prof or writing a paper that you're sure how she uses this term.

The term economic cost always means full cost: out-of-pocket + best forgone opportunity. Unless otherwise stated, opportunity cost and economic cost are used interchangeably in this online text.

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