Is the loss of other alternatives when one alternative is chosen.
Opportunity cost happens every day when we say yes to one thing; we unconsciously say no to many others. One must understand that it occurs multiple times a day, e.g. if you say yes to working late, you are saying no to spending more time with your family or friends.
A simple way to look at it is through the following equation: Yes to one = no to many
We can also look at opportunity cost from a materialistic point of view. By saying yes to purchasing the expensive car, you are saying yes to working more hours to pay it off, which in turn is saying no to your freedom.
And this happens every single day without us realising it. So what are you saying no to today?
Food for thought.
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