<span>An opportunity cost is defined as the value of a forgone activity or alternative when another item or activity is chosen. Opportunity cost comes into play in any decision that involves a tradeoff between two or more options. It is expressed as the relative cost of one alternative in terms of the next-best alternative. </span>
<em>The sacrifice involved in making one decision over another is called an opportunity cost.
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When talking about an opportunity cost, it is referred to as the benfits that exist when making a decision. It could be in business or a personal decision. When one individual makes a decision, there are other options left that can have benefits. The sacrifice involved in making one decision over another is called an opportunity cost. That is why is recommended to make a <u>cost-benefit analysis</u> to contemplate all the benefits.
