- Jessie Jimenez
When you decide to buy something, like a candy bar...
You no longer have the money that you use to pay for the candy bar,
but you also loose the opportunity to buy all the other things or candy bars that cost the same as that item.
This is the opportunity cost. Do you buy a bike,
or a surfboard?
Do you get a new car,
Or invest your money in the stock market?
Every decision costs you the opportunity to do any number of other things with that money. This is opportunity cost.