The value of the next-best forgone alternative is the cost. (Enter one word in the blank.)

The value of the next-best forgone alternative is the opportunity cost.

Opportunity cost represents the potential benefits that one misses out on when choosing one alternative over another. In economic terms, it is the cost of an alternative that must be forgone in order to pursue a certain action. Understanding opportunity cost is essential for making informed decisions, as it highlights the trade-offs between different options. For example, if a student decides to spend time studying for an exam instead of going out with friends, the opportunity cost is the enjoyment and experiences they miss by not going out. Recognizing these costs can help individuals align their choices with their values and goals effectively.