Opportunity Cost Principle

When we make decisions, we need to look at the full set of costs that a decision involves. The opportunity cost principle really gets us to think about alternative uses for our time and money. So say you want to study an extra hour of economics after work because you're learning how to think like an economist. Yes. And let's go through some examples so we can really grasp this. Opportunity costs ore so fundamental decision making that often when we economists talk about cost we're talking about opportunity costs case of basely,. We're broadening the meaning of costs to not just refer to the money we pay for something, but also anything else we might give up.