What is The Opportunity Cost?

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When you hear the word “technical costs” you are actually listening to a fancy word for “trade-off”. Every time you choose, business is closed to take into account. You should analyze what you are receiving and what you are giving.

The most fundamental definition of technical cost is that the best thing you can do is not your first choice. Some economists prefer to break costly and vague opportunities.

Clear Opportunity Expenses

If you own a restaurant and you need to add labor, content, power menu, new item and $ 30 in water, then your clear Opportunity Cost you did with $ 30 that you did not choose to add a new object. For the menu you can take it out of the business, donate, spend on clothes, or add a different menu item.

Implicit Opportunity Cost

If you have another home that you use as a vacation home, the inherent technological value is the rental income you can rent if you rent the tenants and are collected instead of using your monthly check for your family.

Beyond Business

Although the concept of technical expenditure is very much in economics and finance, the technical value is measured according to your personal feelings and values. For example, if you choose to cook, do not just become a doctor in place of a chef, because the doctor earns more money than cooking.

Apart from this, if you can make different choices, you can inspire them to think about all the things. If you were not going to a party where you met your partner? If you bought it in a financing transaction, what is the scam? If you go to Stanford and become the best friend with two billionaire technical giants? You can become crazy to know all the things you can do, so decisiveness is still good.

The goal of studying the concept of technical expenditure is not to constantly make another assumption of your actions or strategy, but make sure you are cognitive or your choices are the result.

The cost of technology is closely related to professional offices

If you have difficulty understanding the base, remember that technical costs are associated with the assumption that almost every decision requires the trade to be closed. We live in a limited world; You can not have two places at the same time. This means that if you choose a restaurant tonight, then you can not choose another. It includes decision-making time-required trade-offs, including the necessary distance and travel each menu item, service level, food and speed reaching the type set price brought to your table.

Right now, in fact, you are reading this article when you can do golfing, or write, exercise, or give food to the bank, or use drugs or learn new skills, or fly a plane in a random country Can jump on Except $ 24 in your pocket. Factors to some extent can be controlled, your life is the fulfillment of your previous decisions. This, in short, is the definition of opportunity cost.

At some level, it is common knowledge material that economists want to make difficult. What you have to do is ask:

  • When did Walt Disney start animation?
  • What if Elton John would never compose a song?
  • What if Warren Buffett is denied from Harvard Business School?
  • What would happen if Thomas Edison stopped working on a light few thousand times a day?
  • What will happen if Michael Jordan cuts off a high school team and does not stop playing basketball?
  • If Steve Jobs has never returned on a trip to lead his resurrection, basically shaping the future of technology?

Understand Opportunity Cost in HINDI : Video

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