Do opportunity costs represent the cost of the next best alternative?

A rational agent considers all costs, including explicit and implicit costs, when deciding whether or not to undertake an action. In this video, learn about how opportunity costs represent the cost of the next best alternative. Want to join the conversation? an opportunity cost is defined as a cost of the next best alternative. Later at

What is the opportunity cost of a choice?

In microeconomic theory, the opportunity cost of a choice is the value of the best alternative forgone where, given limited resources, a choice needs to be made between several mutually exclusive alternatives.

Why does opportunity cost still exist?

Even in a hypothetical scenario where resources are not scarce, opportunity cost still exists because it is inherent in the concept of making choices. Opportunity cost refers to the value of the next best alternative forgone when a decision is made.