What is an example of an opportunity cost?

An opportunity cost refers to the value of the next best alternative that is foregone when a choice is made. In the context of the provided example, purchasing concert tickets instead of a textbook is a clear illustration of opportunity cost. By choosing the concert tickets, you are giving up the chance to gain the knowledge or fulfill the requirement that the textbook would provide for your course. This decision highlights the trade-off between two different uses of your money and the potential benefits associated with them.

In this scenario, the value lost isn’t just the monetary amount spent on the tickets but also the learning and academic progress a textbook could provide. Thus, this example effectively encapsulates the essence of opportunity cost by showcasing the consequences of a choice made regarding limited resources, like money and time.