Authors

• Ahmad Shabani
• Vahid Bigdeli

Abstract

After defining the concepts of Israf and the opportunity cost, this paper tries to shed
light on the relation of these two concepts and to answer these questions: when the
opportunity cost of Israf prevention is more than the Israf itself? what would be the
optimal choice? What should a Muslim manager do?
The answer to these questions can be: there is no trade-off between Israf and the
opportunity cost. It means: because the idea of opportunity cost is a rational matter,
it can be used as a tool to understand what Israf is and what it is not. So, it is
possible to consider a threshold level for Israf above which it is forbidden for sure.

Keywords

• Israf
• opportunity cost
• administrative wasteful costs
• the optimum level of expenditure
• the relation of the Israf and opportunity cost