Discuss briefly the importance of knowing opportunity costs. ​ -

The concept of Opportunity Cost helps us to choose the best possible option among all the available options. It helps us to use every possible resource tactfully, efficiently and hence, maximize economic profits. Opportunity cost is the trade-off between two choices. It's a matter of making a decision on what to give up in order to get something else potentially more valuable or worthwhile. It's prioritizing, and then making a choice. It's letting a second-best option pass by in order to achieve the top priority.