By applying opportunity cost, marginal benefit, and expected return principles, you can build a structured business prioritization process that cuts through noise and increases confidence in your decisions.

Opportunity cost is the value of the best alternative you give up when making a choice. It shows the real price behind every decision because selecting one option means sacrificing the benefits of another.

A business trade-off happens when you choose one goal, project, or product over another because you can’t fund or manage both. Each decision involves giving up something, such as a feature, a campaign, or an opportunity, to gain something more valuable.

Every entrepreneur operates in a world of limits. Whether it is money, time, raw materials, or skilled people, every decision must be made within constraints. Economists call this principle scarcity in business.

Welcome to our new blog series, Mastering Business Economics for Entrepreneurs. This series brings economics into daily business practice in a simple and practical way.