Opportunity costs refer to the benefits or values of the next best alternative that must be given up when making a decision. In other words, it is the value of what you have to sacrifice in order to choose one option over another.
Related terms
Scarcity: Scarcity refers to limited resources in relation to unlimited wants and needs.
Trade-off: A trade-off occurs when choosing one thing means giving up something else.
Marginal Cost: Marginal cost refers to the additional cost incurred by producing or consuming one more unit of a good or service.