Opportunity cost is the best-forgone alternative because it represents the benefits that had to be let go to accomplish something else. For example, today, I wanted to sleep till dawn but recalling that I have a test, I woke up earlier to study. The sleep is the opportunity cost, which is the enjoyment I neglected to prepare for my test.
Different cases of opportunity cost play out in our lives on a daily basis.
Basically, this economic principle plays out when we have to forgo something in order to get another which we believe has higher benefits.
Forgoing seeing a movie to prepare for an exam is another example of opportunity cost.
Learn more about Opportunity Cost here:
https://brainly.com/question/481029
