What is opportunity cost

Answer 1

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.