Opportunity cost refers to the value of what is given up in order to choose something else from "summary" of Economics for Beginners by Andy Prentice,Lara Bryan
Opportunity cost is a fundamental concept in economics that plays a crucial role in decision-making. It refers to the value of the next best alternative that must be sacrificed in order to choose something else. In simpler terms, it is the value of what is given up when a choice is made. When we make decisions, we often have to choose between different options. Each choice comes with its own set of benefits and costs. The opportunity cost helps us understand the cost of choosing one option over another. It is not just about what we gain from our choice, but also what we lose by not choosing the alternative. For example, if you have $10 and you decide ...
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