Opportunity cost is an economic concept that refers to the potential value or benefits lost or foregone when choosing one alternative over another. In other words, it represents the cost of not choosing the next best option when deciding on something.
However, opportunity cost is not always measured in monetary terms. It can also refer to time, resources, or other factors that could have been utilized differently. By considering opportunity costs, individuals, businesses, and governments can make more informed decisions about allocating their resources and prioritizing their actions to maximize overall benefit or value.