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mLine 5:
Line 5: − For example, doing a job that pays only $5 per hour when you could have taken a different job at $12 per hour has an opportunity cost of $7 per hour. Wasting three hours stuck in traffic has an opportunity cost of the money you could have been making for those three hours.+
→Economic Opportunity Cost: reword slightly
== Economic Opportunity Cost ==
== Economic Opportunity Cost ==
An example of this is doing a job that pays only $5 per hour when you could have taken a different job at $12 per hour has an opportunity cost of $7 per hour. Wasting three hours stuck in traffic has an opportunity cost of the money you could have been making for those three hours.
It is not necessarily associated with a monetary cost, and can be applied to any decision of value. For example, a person could choose to eat pizza instead of a salad for lunch. Because they passed up the ''opportunity'' to eat a salad, the salad is an opportunity cost.
It is not necessarily associated with a monetary cost, and can be applied to any decision of value. For example, a person could choose to eat pizza instead of a salad for lunch. Because they passed up the ''opportunity'' to eat a salad, the salad is an opportunity cost.