Trade-off Theory of Money, Time, and Location
A fundamental concept in economics, refers to the potential benefits an individual, investor, or business might miss out on when choosing one alternative over another. But it’s not confined to business contexts. It applies to all areas of life. For example, if we decide to sleep in instead of exercising, there is an opportunity cost involved. Likewise, if we spend more time at work instead of with our kids, there is an opportunity cost to that too.