What is Opportunity Cost?

1 Answer
MathFact-orials.blogspot.com
Oct 21, 2017

See below

Explanation:

To understand the term, I'll use an example from my own life. I live in Thailand and have maybe 100 Thai words that I can use and understand and between those, some broken English, a lot of pointing and gestures, I manage to get through my day interacting with shop keepers and others who only understand a little English (if any). And so I have decided that I will learn Thai and will do that by taking classes at the local YMCA.

What, then, are my costs for taking that class?

  • Financial - I have to pay for the class
  • Time - I have to go to class, study between classes, and practice what I've learned
  • Opportunity - I could have done something else with the money and the time. Like, for instance, learn Mandarin. Or take guitar lessons. Or play video games.
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