Opportunity Cost

What does the term "Opportunity Cost" mean? Well, it's actually something people do everyday. Opportunity Costs is when you give up something in order to get something else. However, in a group of choices, the opportunity cost is the second most desirable option. For example, I made an opportunity cost this weekend. I had the option to study for a Physics test, watch television, or go on the computer. Since I felt that I was okay on the material for the test, and there wasn't a whole lot to watch, I chose to go on the computer. The opportunity cost there, is the television, since it is the second choice I would've made out of all three. It may not have been the most efficient choice I ever made, but I made the choice I liked the most out of the three.