Opportunity cost is the loss of potential gains by selecting an alternative option.
Let's say you want to go out for some drinks. You have two options:
Option A
Go to the sports bar. You will get drinks, you almost certainly will not get laid.
Option B
Go to the club. You will get drinks, but your odds of getting laid are significantly higher.
The opportunity cost of going to the sports bar over the club is losing your chance (albeit however small) to get laid.
Questions?
Let's say you want to go out for some drinks. You have two options:
Option A
Go to the sports bar. You will get drinks, you almost certainly will not get laid.
Option B
Go to the club. You will get drinks, but your odds of getting laid are significantly higher.
The opportunity cost of going to the sports bar over the club is losing your chance (albeit however small) to get laid.
Questions?