Guell (2015), in their book Issues in Economics Today, the opportunity cost is a choice or alternative for selecting the best option. In other words, it is basically the alternative we are giving up for the decision we have made. The decision I made, what I would have done if I did not make that decision and instead what I would be making out. For instance, if someone asks me what is the opportunity cost of riding Honda CB Unicorn 160 then I would respond saying bike engine specifications, features, mileage, and re-sell value which I could probably get into other options.
Now, let’s scrutinize the concept of opportunity cost practically in the setting of my present choice regarding attending the college. Prior attending the college and pursuing my MBA degree (Master of Business Administration) I had other valuable or best alternatives which are now forgone. The dominant underlying choices for me were starting my business venture, going overseas for further studies and pursuing MBA in Nepal (right now in which I am committed to). These were the opportunities which I conceived predominantly and thought of insuring them.
However, it was quite obvious that I cannot have all of these choices (i.e. own business venture, going abroad for further studies and pursuing MBA in Nepal) and out of these best alternative I had to select the most liable and optimum (best) option to acquire my future endeavour. In that class, I evaluated each of the valuable choices thoroughly and made my decision to pursue MBA degree in Nepal and forfeited other alternatives. It implies that I passed up another two opportunities from which I could have gained. Thus, these foregone alternatives or choices of mine are an opportunity cost for me.
Reference
Guell, Robert C. (2015). Issues in Economics Today , 7th edition- 2015 ISBN: 978-0078021817
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Guell (2015), in their book Issues in Economics Today, the opportunity cost is a choice or alternative for selecting the best option. In other words, it is basically the alternative we are giving up for the decision we have made. The decision I made, what I would have done if I did not make that decision and instead what I would be making out. For instance, if someone asks me what is the opportunity cost of riding Honda CB Unicorn 160 then I would respond saying bike engine specifications, features, mileage, and re-sell value which I could probably get into other options.
Now, let’s scrutinize the concept of opportunity cost practically in the setting of my present choice regarding attending the college. Prior attending the college and pursuing my MBA degree (Master of Business Administration) I had other valuable or best alternatives which are now forgone. The dominant underlying choices for me were starting my business venture, going overseas for further studies and pursuing MBA in Nepal (right now in which I am committed to). These were the opportunities which I conceived predominantly and thought of insuring them.
However, it was quite obvious that I cannot have all of these choices (i.e. own business venture, going abroad for further studies and pursuing MBA in Nepal) and out of these best alternative I had to select the most liable and optimum (best) option to acquire my future endeavour. In that class, I evaluated each of the valuable choices thoroughly and made my decision to pursue MBA degree in Nepal and forfeited other alternatives. It implies that I passed up another two opportunities from which I could have gained. Thus, these foregone alternatives or choices of mine are an opportunity cost for me.
Reference
Guell, Robert C. (2015). Issues in Economics Today , 7th edition- 2015 ISBN: 978-0078021817