Final answer:
Opportunity cost is the value of the next best alternative and represents what one must give up to obtain what they desire. It helps individuals make decisions based on what they value the most. It varies from person to person and can involve costs of time or other resources.
Step-by-step explanation:
The concept of opportunity cost is used in economics to represent what one must give up to obtain what they desire. It is the value of the next best alternative. For example, if someone has to choose between buying a burger or using four bus tickets, the opportunity cost of the burger would be the four bus tickets that they would have to give up.
Opportunity cost is important because it involves trade-offs and helps individuals make decisions based on what they value the most. It varies from person to person because people have different wants and needs. In some cases, opportunity cost can be measured in dollars as the price of a product, but sometimes it may involve costs of time or other resources.