BST: Opportunity Cost

This week in our Business Studies, we started to learn about opportunity costs. To simply put, an opportunity cost is losing other choices when picking an absolute choice. This can be seen when we purchase an object; a scenario would be us having a vast amount of choices in a large store. In the store, we have 3 that we like the most. However, we have only the budget to be able to buy only a singular item from the three that we have picked. This becomes a dilemma, which we then need to cancel and look at what we like the most out of the three. When we have picked our ultimate choice, which will be, in this case, one of the objects that we have liked the most; we can then further classify teh order in which we like those items. Knowing which one of the three that we liked the second; we can then call that item our opportunity cost. It is the cost in which we lost with the reasoning of picking the one that we like the most, almost like a sacrifice. Picking one over the other at the cost of that being able to buy the other.