Opportunity Costs: Video Response
August 27, 2009 § Leave a comment
The key economic concept, opportunity cost “is the value of the next best alternative forgone as the result of making a decision (Wikipedia, 2009)”. In this post, let me discuss some points the video we’ve watched today in class has made about opportunity costs.
Point 1: There is a maximum amount to the price of what consumers would choose to pay.
Point 2: There is also a minimum amount to the price of what consumers would choose to pay. Usually, to goods/services that benefits (utilizes) the consumers a lot, then consumers are willing to pay more.
Point 3: Utility is a classy word for benefit.
Point 4: The saying, “Time is money” exists in economics. Time has the most value in cost.
Point 5: People intendedly compute without thinking of how much they are willing to pay for a something.