Explain the concept of opportunity cost and describe a situation in your daily life where you experience it.
Answer (1)
Opportunity cost is the value of the next best alternative that you give up when you make a decision. For example, if you have ₱100 and you choose to spend it on a movie ticket, you give up the chance to use that money for a meal. The meal is your opportunity cost. In daily life, a student might choose to join a basketball tryout instead of studying for a qûiz. The possible high grade they could have earned is the opportunity cost of playing instead of studying. Understanding opportunity cost helps us become smarter in making choices, especially when our time or money is limited.
