What does the term 'opportunity cost' refer to?

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Expenses that have already been spent before deciding on future actions.Costs that remain unavoidable no matter what choices are made later.The value of the next best alternative that is sacrificed when making a decision.The extra advantage gained from purchasing one more unit of a good.

Explanation

Opportunity cost is defined as the value of the next best alternative that you give up when choosing one option over another. It represents what you sacrifice in order to pursue a particular decision.