Recently while writing a book on Economics, I revised the topic called Opportunity cost. It caught my mature mind with joy. It’s a game dude. I could connect my real life so well with Opportunity cost.
What is Opportunity cost?
The simple definition that I wrote for it in my book is “The second best option”. Now, in order to choose we trade-off many qualities or things like I will trade-off a not so handsome, intelligent with high level of IQ for a handsome guy. Will I? Nahhh.. May be a heavy woman will trade-off her favorite ice cream, dark chocolates and ice cream shake to get a lean and sexy body. Will she? Nahhh..I hope she will not.
So how exactly we do the cost benefit analysis to find out the opportunity cost?
- Before choosing, compare the options.
- After comparing, choose the option that gives maximum benefit in long run.
But still some fools end up making wrong choice. That means they have problem in mathematics. Simple. Life is economics + mathematics. Get it correct.