Final answer:
Opportunity cost is defined as the value of the next best choice that is given up when making a decision, and it is closely tied to the concept of trade-offs in economics.
Step-by-step explanation:
The concept of opportunity cost is fundamental in economics and is best defined as the value of the next best choice that is forgone to pursue a particular action. When making decisions, individuals encounter trade-offs and must forgo the option of their next best alternative. For example, if a person decides to spend money on a burger, the opportunity cost might be the other things they could have done with that money, such as purchasing bus tickets. The value of the next best alternative that is not chosen represents the opportunity cost, which varies from person to person based on individual preferences and priorities.