Opportunity cost is the economic concept that refers to the potential benefits or value that an individual or organization gives up by choosing one opportunity or course of action over another. It involves the idea that whenever a decision is made, the next best alternative that is forgone or sacrificed is the opportunity cost. This cost can be expressed in terms of time, money, resources, or any other relevant factor. Essentially, opportunity cost measures the cost of what is given up in order to pursue a specific choice.
Opportunity cost is the value of the next best alternative that is foregone when making a choice. In simple terms, it refers to the benefits or opportunities that are lost when you choose one option over another. It is a concept commonly used in economics to analyze and assess various decision-making scenarios. By considering the opportunity cost, individuals or businesses can make more informed choices and evaluate the trade-offs involved in their decisions.
