Final answer:
Cost refers to the amount of money or resources required to acquire something, while opportunity cost measures what is given up in order to obtain something else. It takes into account the value of the next best alternative that is foregone.
Step-by-step explanation:
The difference between cost and opportunity cost lies in the way they are measured and what is considered in the calculation. Cost refers to the amount of money or resources required to acquire or produce something. On the other hand, opportunity cost measures what is given up in order to obtain something else. It takes into account the value of the next best alternative that is foregone.
For example, let's say you have $20 and you have to choose between buying a book for $15 or going to the movies for $10. The cost of the book is $15 and the cost of going to the movies is $10. However, the opportunity cost of buying the book is the value of the movie experience that you would have to give up, which is $10. In this case, the opportunity cost of buying the book is higher than the cost of going to the movies.
In summary, cost is a straightforward calculation of the resources needed, while opportunity cost considers the value of the alternative options that are forgone.