Question

Summary of opportunity cost

Answer 1

Opportunity cost is the value of the next best thing you give up whenever you make a decision.

Answer 2

Opportunity costs is the possible options you lose when making a decision. This is usually tied to revenues when making business decisions. If I have 3 options to choose from and I only pick the 1st one then the other two options are considered opportunity costs. You lose the potential gain from the alternative options.