In marginal analysis, what does opportunity cost refer to?

In marginal analysis, opportunity cost refers to the value of the next best alternative that you give up when making a decision. When you choose one option over another, you miss out on the benefits you could have gained from the alternative. For example, if you decide to spend your afternoon studying for a test instead of going to a movie, the opportunity cost is the enjoyment and relaxation you would have experienced at the movie. Understanding opportunity cost helps you evaluate your choices more effectively, as it reminds you to consider what you are sacrificing. This way, you can make better decisions that align with your goals and values.