The cost-benefit analysis cannot be used in the evaluation of all the opportunity costs.
- The cost-benefit analysis is when the cost of a project is compared with the benefits in order to know whether to undergo it or not.
- The opportunity cost is when we have to forgo something else in order to do something else. For example, if we've to make a choice between buying a pen and biscuit and we end up buying the pen, the opportunity cost will be the biscuit.
- In this case, cost-benefit analysis cannot be used in the evaluation of all the opportunity costs because even though the benefits of a particular thing may outweigh the costs, our preferences can still determine the choices that we make as we may choose something above the other because we like it and not because it's beneficial than the other thing.
In conclusion, it should be noted that not all the opportunity costs can be evaluated using a cost/benefit analysis.
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