Posted: June 13th, 2021
Click on the link below to see an example of calculating opportunity cost.
Opportunity cost arises when you have scarce resources and you are forced to make a choice amongst various competing alternatives. In the example, the scarce resource is time so the individual has to choose between the 2 jobs.
Formulate your own example that shows what opportunity cost is and go ahead and calculate your opportunity cost.
In your example state what your scarce resource is and show what was the next best alternative then calculate the opportunity cost.
Hint: opportunity cost arises in numerous decisions that we make including; going to college, going for a doctors appointment, making a purchase (like buying a car or anything else) etc.
Watch the video below and briefly share what are some of your own misconceptions of economics and what do you know now about economics that you did not know before
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