Describe opportunity cost in your own words and share an example from an experience explain in 1 to 3 sentences
Opportunity cost is the potential benefit or value that you give up by choosing one option over another. It is essentially the value of the next best alternative that is forgone.
For example, if I choose to spend money on a vacation, the opportunity cost is not being able to use that money for investing in stocks or saving for a bigger purchase. The benefits of the vacation are weighed against the benefits of the other potential uses of the money to determine the opportunity cost.