The cost of choosing one course
of action over another. Letting your second best option pass.
Economists tend to measure opportunity cost in terms
of money for simplicity's sake. However value
isn't always monetary.
At the restaurant, you are presented with a desert menu. Assuming that
you only eat one desert, you have the choice between chocolate mouse, ice cream and honey crepes. Let's say you prefer ice cream to chocolate mouse, but honey crepes are your
favorite. If you eat a honey crepe, ice cream (which would have chosen
had you not had crepes) is your
Another example would be if two women that
you fancied, Sarah and Alice, asked you out and you said yes to Sarah (assuming monogamy), going out with Alice is your