Define opportunity cost?

Opportunity cost is the potential benefit that is foregone when choosing one alternative over another. It represents the value of the next best alternative that is sacrificed when a decision is made. In other words, it is the cost of not choosing the next best option.

Opportunity cost is the value of the next best alternative forgone when a decision is made. It is the cost of an alternative that was not taken. For example, if you decide to go to college, the opportunity cost is the income you could have earned if you had gone to work instead. Opportunity cost is an important concept in economics because it helps people make informed decisions by considering the trade-offs involved in each choice.