write a long note on opportunity
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Answer:
As a representation of the relationship between scarcity and choice,[2] the objective of opportunity cost is to ensure efficient use of scarce resources.[3] It incorporates all associated costs of a decision, both explicit and implicit.[4] Opportunity cost also includes the utility or economic benefit an individual lost, it is indeed more than the monetary payment or actions taken. As an example, to go for a walk may not have any financial costs imbedded to it. Yet, the opportunity forgone is the time spent walking which could have been used instead for other purposes such as earning an income.[3]
However time spent after an income might have health problems like in presenteeism where instead of taking a sick day one avoids it for salary or to be seen as active.
Regardless of the time of occurrence of an activity, if scarcity was non-existent then all demands of a person are satiated. It’s only through scarcity that choice becomes essential which results in ultimately making a selection and/or decision.[2]
Sacrifice is a given measurement in opportunity cost of which the decision maker forgoes the opportunity of the next best alternative.[5] In other words, to disregard the equivalent utility of the best alternative choice to gain the utility of the best perceived option.[6] If there were decisions to be made that require no sacrifice then these would be cost free decisions with zero opportunity cost.[7]