Meaning of Opportunity cost... 

• The opportunity cost of any economic resources is defined as the value of next best commodity which could have been produced by the use of the same resources that can be used to produce many things. For example, a plot of land can be used to produce wheat, rice, maize etc ; mechanical engineers can use it in the production of vehicles, textiles, hydroelectricity etc. But when a factor service is used to produce one good, it can’t be used to produce another. For example, when we use a plot of land to produce wheat, we sacrifice other products that could be produced. Thus the opportunity cost of producing goods isn’t any other alternative goods that would be produced with the same resources; rather, it’s the next best alternative goods that could be produced with the same resources. In other words, the opportunity cost of any goods is the amount of the next best alternative goods that is given up to produce these goods.