Question

If opportunity cost is the value of the best alternative not chosen, why is a rejected option important?

Answer 1

According to the definition of the opportunity cost, it the selecting one option in the sacrifice of other

so rejected option or the sacrificed one is the option that is also the best alternative to the chosen one. But as we know we all are having a lack of resources and we have to select the best in between the two after rejecting rest of the options

for example if a teacher is giving home tuition and get a job in school on a high salary and incentive then he will prefer to join the school but it does not mean that the tuition job was bad . It is the best alternative but he has only option to choose one so he will choose the school.