Evaluate the usefulness of the concept of opportunity cost

Opportunity cost concept is very important to the view of costs of economists. It is defined as the worth or value of a forgone activity or alternative when another item is chosen. It is a relative cost of one alternative in terms of the next best alternative. It is a vital economic concept which finds application a wide range of business decisions. Decision - making is usually overlooked by opportunity cost. Opportunity costs should often subjectively estimated by decision-makers.