Opportunity Costs

Opportunity costs means that the value of the next-highest-valued alternative use of that resource. This means that you basically have two alternatives and you hav to pick out of the two. One option will have greater value than the other making your opportunity cost greater. For example, if a gardener decides to grow carrots, his or her opportunity cost is the alternative crop that might have been grown instead (potatoes, tomatoes, pumpkins, etc.).