Final answer:
Of the P's in marketing, price is defined as the buyer's cost, which includes not just monetary value, but also time and energy. Opportunity cost is the value of the next best alternative given up when making a choice.
Step-by-step explanation:
Of the P's, price is whatever the buyer gives up in exchange for the product, like money, time, or energy. When thinking about the cost involved in a decision, it is critical to consider the concept of opportunity cost. The opportunity cost measures the value of the next best alternative that was foregone in making a decision. For instance, when choosing how to spend a Friday night, if the decision is to go to the movies, the opportunity cost would be the most desirable alternative among the ones not chosen, such as attending a concert, volunteering, visiting a relative, or working at a job. The theory of opportunity cost is an important principle in economics and helps individuals and businesses to measure the cost not just in terms of money, but also in terms of other resources, including time and enjoyment. It implies that for every choice made, there are trade-offs, and understanding these can lead to more informed and beneficial decision-making processes.