View the 9-minute video clip called Opportunity Cost Explained. The purpose of this video is to succinctly explain the concept of opportunity cost using college students in some of the examples.
Is the opportunity cost really that important? Can it influence a decision? What are the direct costs of going to college for you? What are your out-of-pocket expenses? What are your tuition, fees, books, housing, transportation, supplies, for example. What are the indirect costs of attending college? In other words, what could you have done if you were not in college? What is sacrificed?
Opportunity cost doesn’t have to have a price attached to it – just a value attached to it. If the opportunity cost is too high, the decision to go (or continue) in college will be forgone. As we discussed in the lesson, this often happens with student athletes. If professional teams will hire them, they could lose millions of dollars by remaining in college. So college athletes often leave college to join a professional team.
Remember the opportunity cost of anything is the single highest valued alternative to that particular decision maker when a decision is made. The opportunity cost then varies from person to person. What is your opportunity cost of attending college for you? Even with all of the alternatives and opportunities available to you, you still decided to go to college? Why is that?
Write no more than 50 words. Read the submissions of other students in the class and react appropriately to at least two other students in the class. You might want to agree or disagree with another student. Or, you may add to what another student has written. Be reflective and detailed in your responses to other students in this course. Please go beyond a mere, “I agree with you” response.