Opportunity Loss

Opportunity loss is a cost or profit loss for taking a certain course of action that prevented the investors to gain full potential profit. In other words, it's the cost of being locked in to a certain solution and not exploiting the alternative solutions.

Measuring the opportunity loss is as important as measuring the benefits of a product. Suppose a company has to produce a product. It has two options which are quite different and unique. The company would do the following:

• List down benefits for going with solution A
• List down opportunity loss for going with solution A
• List down benefits for going with solution B
• List down opportunity loss for going with solution B  

If the end the company should go with the solution that has high benefits and small costs for choosing to make that solution.

Reference:
(1). http://ifci.ch/00012254.htm
(2). https://wiki.treasurers.org/wiki/Opportunity_loss
(3). https://www.learningall.com/what-is-opportunity-cost-with-example/