Management must always take into account the Opportunity Cost, a key economic term, while deciding which strategic investments to make.
The value of the best chance lost in a specific decision is its opportunity cost. It is not just the cost of that decision. The core ideas of economics are choice, opportunity cost, and scarcity. If choosing one alternative necessitates sacrificing another, that good is considered to be scarce.
example:
1. I chose to cook at home rather than consume poorly prepared cuisine out.
2. Rather than waste time gossiping with others, I used my free time for myself.