Describe opportunity cost in more of your own words and share and example from an experience
Opportunity cost is essentially the potential benefits or value that is lost when choosing one option over another. It represents the trade-off that occurs when making a decision between different alternatives.
For example, let's say you have the option to either go on a weekend trip with friends or work overtime at your job to earn extra money. If you choose to go on the trip with your friends, the opportunity cost would be the extra money you could have earned by working overtime. In this case, the opportunity cost is the foregone income that could have been earned by choosing to work instead of going on the trip.
In essence, opportunity cost is not just about the financial implications of a decision, but also the intangible benefits or experiences that could have been gained by choosing a different option. It highlights the importance of considering all potential trade-offs when making decisions in order to make the most beneficial choice.