Page "Opportunity cost" Paragraph 1

Opportunity cost is assessed in not only monetary or material terms, but also in terms of anything which is of value.

For example, a person who desires to watch each of two television programs being broadcast simultaneously, and does not have the means to make a recording of one, can watch only one of the desired programs.

Therefore, the opportunity cost of watching Dallas could be not enjoying the other program ( such as Dynasty ).

If an individual records one program while watching the other, the opportunity cost will be the time that the individual spends watching one program versus the other.

In a restaurant situation, the opportunity cost of eating steak could be trying the salmon.

The opportunity cost of ordering both meals could be twofold: the extra $ 20 to buy the second meal, and his reputation with his peers, as he may be thought of as greedy or extravagant for ordering two meals.

A family might decide to use a short period of vacation time to visit Disneyland rather than doing household improvements.

The opportunity cost of having happier children could therefore be a remodeled bathroom.