Opportunity cost economics is the concept that all decisions involve a trade-off between potential benefits and losses. In other words, it represents the potential gains you could have had if you had chosen an alternative option. Simply put, it’s the difference in what you get by making one decision over another – the sacrifice or gain that comes with choosing one course of action over another. When calculating opportunity costs, it’s important to consider not only the tangible effects of your decision, but also the intangible benefits or consequences that might be involved. That way, you can accurately assess the total cost of your decision and make the best choice for your business.