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Think about major purchases you have made in the past. Now that you know about opportunity cost, would that knowledge have affected your decision to make any past purchases? Your journal entry must be at least 200 words in length. No references or citations are necessary.
For this discussion, begin a conversation and select ONE of the following:
· What is opportunity cost?
· Why is it important to understand what opportunity cost is when trying to save money?
· What examples of opportunity cost do you find helpful in understanding budgeting?
Provide your own definition of “opportunity cost”. Discuss what the opportunity cost of attending college is for you, noting that the concepts of opportunity
costs and explicit monetary costs are not the same.
Define the term “opportunity cost.” How may this cost be relevant in a make-or-buy decision?
Every decision has an Opportunity Cost due to the nature of scarcity, there is always a better alternative not chosen, therefore, there is always an opportunity cost. “The opportunity cost of an alternative is what you give up to pursue it” (Froeb, McCann,Shor & Ward, 2016). When you go to a Maroon 5 concert, you give up $100 of benefits you would have received if you had gone to a Beyoncé concert. Also, you would also avoid $80 of cost for the Beyoncé concert. According to the definition below, the opportunity cost of seeing Maroon 5 concert is $100 – $80 = $20. Please delve into the statement there are always opportunity costs. How can an individual make the best decision? Is there a best decision? Would one miss an opportunity not attending one of the concerts? Include a minimum of one reference.