Question

What is the difference between a trade-off and an opportunity cost

Answer 1

when we sacrifice one thing to obtain another, that's called a trade-off

Opportunity cost is an economic concept which used to discuss choice.

Answer 2

Answer and Explanation

Trade off is the compromise but the opportunity cost is the loss of the things which is not taken. It is the way which is not considered. Trade-offs generate opportunity costs. When we create a trade-off, the point which we do not prefer is our opportunity cost. Hence in an individual's life, everything has opportunity costs. A trade-off means the possibility that is given up, to accomplish what is wanted. While, the opportunity cost is the cost of the second desirable option given up to obtain a decision.