Opportunity Cost is the BENEFIT forgone when choosing the next best alternative.
Opportunity Cost despite its name is about the benefits or the positive things that you may lose out on if you choose an alternative course of action.
In this video, the opportunity cost of getting a grade A in a test was a happy girlfriend. Both options are positives - the opportunity cost of a grade A is not an unhappy girlfriend. He has to give up a happy girlfriend to get an A in the test. This is why the definition of opportunity cost is the benefit forgone (given up).
Think of it as opportunity lost...
Opportunity Cost despite its name is about the benefits or the positive things that you may lose out on if you choose an alternative course of action.
In this video, the opportunity cost of getting a grade A in a test was a happy girlfriend. Both options are positives - the opportunity cost of a grade A is not an unhappy girlfriend. He has to give up a happy girlfriend to get an A in the test. This is why the definition of opportunity cost is the benefit forgone (given up).
Think of it as opportunity lost...
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