Opportunity Costs: Video Response

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.

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