🔍 What is Opportunity Cost?
Opportunity cost is the value of the next best alternative that you give up when you make a choice.
In simpler words:
Whenever you choose one thing, you’re also choosing to miss out on something else. That “something else” is your opportunity cost.
💡 Why Does It Matter?
Every time you spend your time, money, or energy, you’re making a decision. Understanding opportunity cost helps you make smarter choices — in studies, money, and even free time!
🎯 Real-Life Examples:
1. Choosing to Study vs. Watching Netflix
Imagine it’s Friday night. You have two options:
- Study for your test 📖
- Watch your favorite series on Netflix 🍿
You choose to study.
✅ Good move! But…
❗ Your opportunity cost is the enjoyment and relaxation you missed from Netflix.
2. Buying a Phone
You have ₹20,000. You can either:
- Buy a new phone 📱
- Use that money to enroll in an online course 🧑💻
If you buy the phone, your opportunity cost is the skills and potential career boost you missed from the course.
3. Time Management in Exams
During exams, if you spend too much time on one question, the opportunity cost is not attempting other questions that might earn you easier marks.
🧠 In Short:
Every choice has a cost — the cost of the path you didn’t take.
✅ Quick Recap:
- 🎯 Definition: The benefit you miss out on when choosing one option over another.
- 🛠️ Use it to: Make better decisions in studies, money, and time.
- 🔁 Think before you choose: What am I giving up by doing this?
