What does the concept of opportunity cost imply when calculating profit in a scenario where one must choose between two production options, considering comparative advantage?

Opportunity cost is the idea that when you choose one option, you give up the chance to do something else. In terms of profit, this means that if a business decides to produce one product instead of another, it needs to consider what it is missing out on from the other product. For example, if a factory can produce either 100 bicycles or 50 skateboards in a week, choosing bicycles means the opportunity cost is the profit it could have made from the skateboards. This is important because understanding these costs helps businesses make better decisions about what to produce to maximize profits. By focusing on what they do best, businesses can use their resources efficiently and choose the option that gives them the highest overall profit.