Answer:
The opportunity cost refers to the benefit that is foregone by choosing some other alternative or it is the benefit obtained from the next best alternative. The opportunity cost can be in monetary terms as well as in non monetary terms.
For instance, a student is attending the college and listen to the class. So, the opportunity cost of attending the college is as follows:
(i) The time could be utilize in earning some money income or
(ii) The time could have been spent in enjoying some activity or leisurely.
