What is opportunity cost in economics?

2 min read

Have you ever had the feeling that you were making a wrong decision in economics if you only take the value of the good or service?

In other words, how many times did you buy a product more expensive than another just because it had a promotion, was from a brand that you like, or was to your liking? More than once true; well that's called opportunity cost.

What is opportunity cost in economics? – Online legality – WebMediums

What is the opportunity cost?

It is the value of the second option when buying or acquiring and what we discard, for example, if we have a 3-door car of a brand at ten thousand dollars and a 5-door car at eight thousand dollars, and we opt for the first, our Opportunity cost would be the value of the second vehicle, we discard a relatively larger car, with more doors and even of less value for one that has fewer doors and is more expensive.

The reasons why you did that are personal, they can lie in the type of brand, security, performance or simply taste, in economics it is called opportunity cost.

Advertising incentives are the tools that sellers have when it comes to trading your decision for opportunity cost.

I am going to buy a yogurt with cereals, but in the advertisement I saw one that says it also has additives for rapid digestion, another does not say so, but it comes with a promotion that I can win a car, which one do I choose? Any of them can be your option.

The option discarded as we mentioned is the opportunity cost, this variable vector is usually the one that is worked the most in marketing, digital marketing tools are the best to attract people who are not entirely sure what to buy, that is why there are campaigns to make your wants and needs change.