Opportunity Cost
Opportunity cost refers to the loss of potential benefit that has been forgone in order to pursue another action through purposeful decision or ignorance.
iI a company decides to use its resources to develop a new product, the opportunity cost is the potential profits it could have earned if it had used those resources to develop a different product or expand into a new market.
Opportunity cost is an important concept in economics and decision-making because it helps individuals and organizations make more informed choices by considering the benefits and drawbacks of different options. By weighing the potential opportunity costs of each decision, individuals and organisations can make more strategic and thoughtful choices that align with their goals and priorities.