Opportunity loss refers to the potential benefits that are missed when one choice is made over another. For example, if a person decides to invest in Company A instead of Company B, the difference in returns between the two investments represents the opportunity loss. This concept helps individuals and businesses evaluate the cost of their decisions. In decision-making, opportunity loss is an important factor to consider. It encourages people to weigh their options carefully, as choosing one path may mean forgoing the advantages of another. Understanding opportunity loss can lead to more informed and strategic choices in various aspects of life, including finance, career, and personal relationships.