Hidden Cost of Every Choice

byTulika Prashant

Over the last few years, companies around the world have invested billions of dollars in artificial intelligence (AI). They could have used that money for other purposes, such as expanding into new markets, upgrading factories or hiring more employees, but they chose to put all their resources into one purpose only. Every decision, therefore, involves a trade-off. Economists have a special term for this trade-off; it is called opportunity cost.

What Is Opportunity Cost?In economics, every choice has a cost. Opportunity cost is the value of the next best alternative that is given up when making a choice.Think of it this way. Suppose you have ₹200 and can buy a movie ticket, a comic book or a football. If you choose football, you give up b