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Write a comment on the quote “Opportunity Costs Means Opportunity Lost”. |
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Answer» In real life, we go from one job to another and from one business to another. We lose the current job salary for a second job. So remuneration lost is termed as opportunity cost. Suppose a person working as a clerk for Rs. 2,000/- per month is to be appointed as a supervisor. Other things being equal, the person is to be offered higher than Rs. 2,000/- for the job of a supervisor. But at the same time, he is to sacrifice his old job of Rs. 2,000/- per month. This sacrifice of Rs. 2,000/- is his opportunity cost of working as supervisor. Thus, opportunity cost is the opportunity lost or opportunity foregone in terms of the next best alternative use of a factor. |
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