It is a topic of deep research and debate. In layman's terms, opportunity cost represents the potential benefits that an individual misses out on choosing one alternative over another.
To check whether the chosen decision is correct or not, we should ask three questions ourselves:
How much do I value this?
What am I giving up now to have this?
What am I giving up in the future to have this now?
This will give a clear picture of whether the decision we're going to take will be beneficial to us or not.
A small example of this can be: A student sends Rs. 700 on movie & lunch and 2-3 hours playing video games a night before the exam. Here the opportunity cost is time spent studying and that money spent on traveling to the institution & back.
(Bal Bharati Public School, Pitampura)