Principles of Microeconomics / Unit 1 MIC 0003 short lesson, about 20 seconds
Opportunity Cost
Captions available
The idea
The opportunity cost of a choice is the value of the best alternative given up. Every choice has one, and only the single best alternative counts.
In practice
A year at college costs tuition plus the wages given up while studying.
Where people slip
Opportunity cost is not the purchase price. Time given up can cost more than money spent, and it never appears on the receipt.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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