The Key Difference Between Trade-Off and Opportunity Cost

trade-off vs opportunity cost
Feature	Trade-Off	Opportunity Cost
Definition	The act of giving up one thing to gain another.	The value of the next best alternative foregone when making a choice.
Focus	Balancing benefits and drawbacks between options.	Evaluating the cost of missed opportunities.
Scope	Often involves multiple options with different pros and cons.	Usually compares only the best alternative not chosen.
Application	Common in decision-making processes to prioritize resources.	Used to assess the true cost of decisions in economics.
Example	Choosing to spend time studying versus working.	Choosing to invest in stocks instead of bonds; the return lost is opportunity cost.
Measurement	Qualitative and quantitative trade-offs can be assessed.	Typically expressed in terms of potential gains or benefits foregone.