The cost of pursuing one opportunity or action, measured by what had to be given up in the course of choosing that opportunity. For example, opportunity cost may be not having the money to make an alternative investment because it has been spent on something else. Another type of opportunity cost occurs when a company can’t expand in a certain area because expansion is already occurring in one region and the company’s resources would be stressed.
Opportunity cost is defined as the value of something that is lost because you choose an alternative course of action.
The opportunity cost of going to college is the value of the lost years of income which you would have earned if you had not quit your job and gone to college.