The opportunity cost of an action is always equal to: multiple choice the things you could have done instead of the action you chose to undertake. the time you give up to undertake the action. the money you give up to undertake the action. the next-best alternative for the resources used to undertake the action.

Opportunity cost also known as the alternative forgone, can be defined as the value, profit or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.

Simply stated, it is the cost of not enjoying the benefits, profits or value associated with the alternative forgone or best alternative choice available.

For instance, if you decide to invest resources such as money in a food business (restaurant), your opportunity cost would be the profits you could have earned if you had invest the same amount of resources in a salon business or any other business as the case may be.

Hence, the opportunity cost of an action is always equal to the next-best alternative for the resources used to undertake the action.