Opportunity Cost

Opportunity Cost Current Event - Opportunity CostWhen thinking about the term opportunity cost or trade-off, many individuals know this to be choosing between two things, and ultimately losing something in choosing one alternative to another. That is exactly what opportunity cost is, choosing an option but losing the benefits of the other. As people, we do what we need to survive, and ultimately what is best for us and our futures. What some do not realize, is that we make these kinds of decisions on a daily basis, and one of the most important decisions it seems these days involves education.There are many decisions involved in deciding ones educational approach. Some students look at how long a degree might take to complete (years wise), others may look at how much that degree will pay off in the long run (income wise), and then some may look at what degree they wish to pursue depending on their skills and love of the career they expect to gain.Phil Edwards of Canda (centre) competing in the me...T he statistics show that Phil, in one hour, can produce either 1 financial statement or answer 8 phone calls. In contrast, Francis can either produce 2 financial statements or answer 10 phone calls. When I figure these statistics into a work day that consists of 8 hours, Phil produces 64 phone calls or 8 financial statements, and conversely Francis produces 80 phone calls and 16 financial statements. These statistics clearly show that Francis has the absolute advantage when it comes to productivity and time by producing twice as many financial statements and answering twenty percent more phone calls than Phil in one hour.To better explain my decision I broke Phil's and Francis's opportunity cost...