Everyday we make opportunity costs, sometimes without even realising it, and whether we are aware of it or not they do affect our everyday lives. For every decision that is made there is always an opportunity cost, this being the highest valued alternative to your first choice.The opportunity cost can be something as little as deciding to have white bread over brown. Because you chose white bread as your first choice, the opportunity cost would be brown bread.
One of the decisions I was faced with was to either help out with my sisters birthday party or go to the fair. I chose to spend my time helping out with the party therefore my opportunity cost was the fair. However if after I was finished with helping my sister I had then been faced with the decision to go to the fair or to do homework for example, the fair would then become my first choice and homework would now be my opportunity cost. The opportunity cost changes once certain decisions are made.
Great piece on the choices you have made and the inevitable sacrifices (re: opportunity costs); although I'm not fully supportive of your final choice (re: homework being your opportunity cost)!
Opportunity cost occurs in my everyday life, whether I realise it or not. Lots of choices occur to me every day for example every morning when my alarm goes off I decide whether to get up for or not, the opportunity cost of staying in bed longer (the decision I usually make) is getting up and getting ready without rushing.
Saturday in particular was a day full of lots of decisions for me to make. Firstly I woke up at 8 in the morning and I chose to get up and do all the homework I had, the opportunity cost of that decision was going back to sleep. Then later on I decided to get a shower and get ready, the opportunity cost was watching a film. I then fancied going out for lunch but couldn't decide whether to or whether to save my money for a winter coat. I chose to spend my money on going for lunch; therefore the opportunity cost was having less money for a winter coat. Another decision then came from that: where to go for lunch? I couldn't decide between Nando's and Pizza Hut, the opportunity cost was Pizza Hut as I went for a delicious Nando's in the end! Then after lunch I went to my friends and we couldn't decide between a DVD day or going for a big walk, we chose to go on a walk, the opportunity cost being a DVD day.
When I make decisions I sometimes won't even think about it, but with every decision made every day there is always an opportunity cost!
Exactly what I was looking for!
Indeed, whilst we may all stick to a daily routine there is always an opportunity cost involved because of the economic problem (i.e. limited resources (time, money etc) compared with unlimited wants and needs).
It was my birthday! I was deciding whether to go to Central Park or Joe Rigatonis. I’ve never been to Central Park and I go to Joe Rigatonis a lot so I know what the food tastes like. As it was my birthday I didn’t want a bad meal so I went to Joe Rigatonis as I like it there and I knew it would be nice like all the other times. Therefore, Central Park was my opportunity cost as I went to Joe Rigatonis and enjoyed my pepperoni pizza!
Many happy returns Eden!
I'm guessing you're a creature of habit, choosing to stick with the tried and tested goods and services you know and love (re: Joe Rigatonis). Opportunity cost does not simply occur and stop at the choice of restaurant but continues with the food selections you make from the menu and the decisions over what to sample from the dessert trolley and so on....opportunity cost pervades our lives whether you realise it or not!
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