Social Sciences and History / Unit 13 SSH 1206 short lesson, about 20 seconds
Opportunity Cost in Money, Time, Resources
Captions available
The idea
Opportunity cost measures cost by what we give up in exchange: the value of the forgone alternative. It can be measured in money, but often it is useful to count time, or the actual resources forfeited.
In practice
A free concert costs the evening's wages.
Where people slip
The cost is the best alternative forgone, not all of them.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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