Opportunity Cost (Economics Lesson)

Opportunity Cost (Economics Lesson)

Economics

Inyang Umoh (tutor)
09-02-2016 06:12:00 +0000

Like many other economics terms, the concept of opportunity cost is easy to understand because we often deal with it in our everyday lives.

Opportunity costs is a measure of what must be given up to obtain something that is desired. The idea behind opportunity cost is that the cost of one item is the lost opportunity to do or consume something else;

For example: Ade goes to school 2 km from his home. It cost N100 to take a taxi home. He only has N100 on him. Ade really loves ice cream and he sees an ice cream vendor. He has to make a decision.

If he buys the ice cream he will have to walk home. Yet if he uses a taxi he will not have money for the ice cream. If Ade was an economist he would say, the opportunity cost of buying the ice cream is the loss of the taxi ride. The opportunity cost of taking the taxi is the loss of the delicious ice cream.

Can you think of other example of opportunity cost? If so give an example

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Glory Uzochukwu67

bisi has N500 to buy a pair of shoes,she saw a bag it cost N500 and she has N500 only, so she bought d bag nd left the shoe.if Bisi was an economist, she would say d opportunity cost of buying bag is the loss of shoe

0 09-02-2016 14:20:00 +0000

Agboola Abdulrasheed

to my understanding, it means giving up one thing for the other. let me say the most important one has to be attended. e.g I have only #100 and I want to buy card and at the same time am hungry. If I buy card with the money I will call who will send me money and if I eat there will be zero hope ...... why not give the food up for the card........ what do you guys think?

0 11-02-2016 00:22:00 +0000

Francis Omotayo

Yeah, you have to give the money for food instead of card

0 11-02-2016 05:34:00 +0000

Ebenezer kadiri

U people dnt really understand opportunity cost. opportunity cost is d process of satisfying a MORE important nd pressing want and forgoing d less important so u would sumone has only 100 wen he really need food and card nd he founds out dat d both items are d same price he will ave to sacrifice d less important which is card nd buy d most pressing one which is d food. so in conclusion d card he sacrifice for food is d opportunity cost

0 11-02-2016 06:37:00 +0000

Admin Admin

@agboola your are getting close to the key point. Opportunity cost is a way of describing the things you had to give up in order to buy/get something. Because money if limited, you often have to give up something to get another thing. So far @ebenezer has the best explanation

0 11-02-2016 06:55:00 +0000

Yusuf Opeyemi

I need a uniform before buying a book

0 11-02-2016 07:39:00 +0000

LAWAL OLUWAFEMI

Opportunity rtunity cost is a way of sacrifice the less important for the best and mostly important to someone. Example I have #540 and I want to use the for buying a new cotton on stepping out I saw a Nepa officer coming down to our house nobody is at home except me, he just said where is your receipt of payment in which our landlord did not put it out, The Nepa officer just said failure to provide the payment of receipt we will cut down the wire. I have to beg him and give him #500. So the opportunity cost of giving the money to Nepa officer is the loss to buy a new cotton. Thanks

0 11-02-2016 08:03:00 +0000

HELEN SYLVESTER

to my understanding, it's giving up something in order to get another(forgone alternative).example. I want to buy a book and a pen. it's important cause am going to use them today,I don't have a book to write with for test,and I don't have a pen to write with,and am having 20naira,and the cost of pen is 20 with that of book. if I buy the pen and leave the book which means I have giving up the book(forgone alternative) am I right?

0 13-02-2016 07:35:00 +0000

Oluwa Grinity

My mother give me money to buy drinks and i love drinking i use the opportunity to drink my life out

0 13-02-2016 07:50:00 +0000

Adebayo Tosin

Very easy am having 100naira want to buy shoes,pen and trouser each cost 100naira and I need pen most so if I buy d pen the other two I let go are my opportunity cost

0 13-02-2016 08:49:00 +0000

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