Determining opportunity cost is a business concept that looks at the benefits and costs associated with an action. It’s essentially a way of deciding whether or not a course of action is worth taking, by comparing the benefits of taking it against the costs of forgoing any other options. The idea behind it is that resources are limited, so making one decision typically means giving up something else. To determine opportunity cost, businesses need to consider what they’re gaining from taking a certain action and what they’re potentially giving up by not exploring other opportunities. By focusing on what’s most important, businesses can make informed decisions that align with their overall objectives.