Unlike most of the costs discussed in economics, opportunity costs do not necessarily involve money. The opportunity cost of any action is just the next best alternative to the action: What would you do if you didn’t make a choice? The concept of opportunity cost is crucial to the notion that the true cost of anything is the sum of everything you have to give up. Opportunity costs only consider the next best alternative to action, not a complete alternative, and take into account all the differences between the two options. We are actually dealing with the concept of opportunity cost every day. For example, options for a day’s work may include going to the movies, staying at home to watch a baseball game, or having a coffee with friends. Choosing to go to the movies means that the opportunity cost of the action is the second choice. Often, making choices includes two types of costs: explicit and implicit. Explicit costs are monetary expenditures, while hidden costs are intangible and therefore difficult to interpret. In some cases, such as weekend plans, the concept of opportunity cost includes only those abandoned alternatives or hidden costs. But in other respects, such as the company’s profit maximization, opportunity cost refers to the difference in the total amount of hidden costs, and the more typical clear monetary cost between the first choice and the next best alternative. The concept of opportunity cost is especially important because in economics, almost all commercial costs include some quantification of opportunity costs. In order to make a decision, we must consider the benefits and costs, and we usually do this through marginal analysis. Companies maximize profit by weighing marginal and marginal costs. What is the most profitable when considering operating costs? The opportunity cost of an investment will involve the difference between the return on the selected investment and the return on other investments. Similarly, individuals weigh individual opportunity costs in their daily lives, which often include as much as explicit hidden costs. For example, weighing a job opportunity involves analyzing more benefits, not just wages. High-paying jobs are not always the choice of choice, because low-paying jobs may be more appropriate when you consider benefits such as health care, vacation, location, job responsibilities, and well-being. In this case, the wage difference will be part of the opportunity cost, but not all. Similarly, working extra hours at work can provide more wages, but it takes more time to do things outside of work, which is a job opportunity cost.