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What's the opportunity cost? [Copy link] 中文

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Gold Medal September's Best Writer 2012

Post time 2011-4-17 10:31:09 |Display all floors
What's the opportunity cost?

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Gold Medal September's Best Writer 2012

Post time 2011-4-17 10:31:48 |Display all floors
Someone told me it's like

are likly "结婚了吧,傻逼了吧,以后赚钱就两个人花,离婚了吧,傻逼了吧,以后要上床就花钱了吧”

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Gold Medal September's Best Writer 2012

Post time 2011-4-17 10:33:10 |Display all floors
We choose sth, and choose to do sth, definitely we would lose the other opportunities and the following consequences.

Is this the opportunity cost?

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Post time 2011-4-17 10:34:56 |Display all floors
e.g.
..If you choose to marry one girl, and then you would lose the opporutunity to marry the most beautiful girl in China. you would lose the opportunity to marry the most kind girl ...

is it the opportunity cost?

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Post time 2011-4-17 10:43:07 |Display all floors
Opportunity cost is the cost related to the 2nd best choice available to someone who has picked among several mutually exclusive choices.


Opportunity cost is assesssed in not only monetary or material terms, but also in terms of anything which is of value. Monetary and financial costs, the real cost of output forgone, lost time, pleasure, and other benefit provides utility are all considered opportunity costs.

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from wiki

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Gold Medal September's Best Writer 2012

Post time 2011-4-17 10:47:49 |Display all floors
e.g.
You have 2 choice now:
to watch a porn film or to read a book
If you choose to watch the porn film, and then you would not enjoy reading the book.

the reverse is also true.

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Post time 2011-4-17 10:48:24 |Display all floors
In environmental protection, the opportunity cost is also applicable. This has been demonstrated in the legislation that required the carcinogenic aromatics (mainly reformate) to be largely eliminated from gasoline. Unfortunately, this required refineries to install equipment at a cost of hundreds of millions of dollars - and pass the cost to the consumer. The absolute number of cancer cases following from exposure to gasoline, however, is low, estimated a few cases per year in the U.S. Thus, the decision to legally require less aromatics has been criticized on the grounds of opportunity cost: the hundreds of millions spent on process redesign could have been spent on other, more fruitful ways of reducing deaths caused by cancer or automobiles. These actions (or strictly, the best one of them) are the opportunity cost of reduction of aromatics in gasoline.

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This example from wiki

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