Opportunity Cost Economics is a foundational element of business decision-making, allowing businesses to determine the most profitable and efficient allocation of resources. Opportunity cost is the cost of foregoing one possible course of action in order to pursue another. It reveals that there can be hidden costs associated with seemingly attractive options. To maximize profits, businesses must understand opportunity cost economics and use it to assess what their best options are when making decisions about resource allocation, investments, and other important matters. Opportunity cost economics helps businesses make smart decisions in a competitive landscape by focusing attention on the choices that bring the greatest value and return.