Opportunity Cost

Opportunity cost is the potential benefits or gains that could have been obtained from an alternative course of action, often discussed in decision-making meetings. When making choices or decisions, individuals or organizations weigh the benefits of their chosen option against what they could have gained from the next best alternative. Understanding opportunity costs is crucial for making informed decisions, as it helps assess the trade-offs and implications of choices. By considering opportunity costs, decision-makers can prioritize and allocate resources more effectively, ultimately maximizing their outcomes.