as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
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explain the concept of "opportunity cost".
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opportunity cost is the cost of an opportunity not taken; it is the cost of the next best alternative. it is the value of the forgone alternatives when one alternative is chosen. opportunity cost reflects the full economic cost of a decision, and can be seen as the true cost of a choice. for example, if someone chooses to spend money on a vacation, the opportunity cost of that decision are the other things that money could have been spent on.
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