Understanding opportunity cost is really important for making good choices in our daily lives. It helps us see what we give up when we pick one option instead of another.
Let’s break this down with a couple of examples:
If you decide to study for a test, the opportunity cost is the fun time you could have spent hanging out with your friends.
If a company buys new machines, the opportunity cost might be the money it could have used for advertising its products.
When we think about opportunity costs, we can make better decisions that show what really matters to us!
Understanding opportunity cost is really important for making good choices in our daily lives. It helps us see what we give up when we pick one option instead of another.
Let’s break this down with a couple of examples:
If you decide to study for a test, the opportunity cost is the fun time you could have spent hanging out with your friends.
If a company buys new machines, the opportunity cost might be the money it could have used for advertising its products.
When we think about opportunity costs, we can make better decisions that show what really matters to us!