The two types of opportunity costs are explicit opportunity cost and implicit opportunity cost. Explicit opportunity cost has a direct monetary value. For instance, if a restaurant buys $1,000 worth of ground beef, the cost is the other things that it could have purchased with that money, like chicken wings or hamburger buns.

Implicit opportunity cost, on the other hand, does not have a direct monetary value. If the same restaurant takes that ground beef and makes meatloaf, the implicit opportunity cost is the hamburgers it could have made and sold with the same ground beef.

You should consider both explicit and implicit opportunity costs when you are investing, building your career, running your business or just organising your life.