What is the concept of opportunity cost?

What is the concept of opportunity cost?

The concept of opportunity cost refers to the idea that when making a decision, the cost of choosing one option is the value of the next best alternative that is foregone. In other words, it is the cost of not choosing the next best alternative. Opportunity cost is a fundamental concept in economics as it helps individuals, businesses, and governments make rational decisions by considering the trade-offs involved in choosing one option over another.