Opportunity cost Essay Example | Topics and Well Written Essays - 500 words

Opportunity cost - Essay Example Opportunity cast can them be defined as the act of forfeiting acquisition of a product or a service for utilization while in the same breadth opting for another that according to the prevailing circumstances you believe can best satisfy your need. Opportunity cost then is reached by an individual after weighing all the options in a circumstance and opting for only one, in this sense, it can be appreciated that the opportunity cost comes with the aspect of choice and scarcity in equal measure. The concept of the opportunity cost is a culmination of the major economic problem which involves the ever limited resources in the society and that needs to satisfy the ever increasing unlimited demand for the products and services. Economists thus are faced with the problem of deciding what product to be produced in what quantity by the limited recourses available to satisfy an envisaged demand. Opportunity cost can also take the aspect of time; demand and supply is all dependants and is affected by the time and thus opportunity cost can be effectively applied in reference to time (Ojediran 114). The video clip that was view and summarized in this paper explains the sense of opportunity cost. It considers the opportunity cost of travelling from state collage to Florida during spring break engaging a bus and the other engaging a plane. In the in-depth explanation of how to calculate the opportunity cost, Dirk takes his class through an integrated determination of opportunity cost by using empirical figures to clearly and vividly connote the essence of opportunity cost. He asks the class to determine the variables that will be considered in when gauging the opportunity cost of travelling from state collage to Florida and he advanced two options; a plane and a bus. He gets the response from the students that cost of the journey with reference to the two