Importance Of Opportunity Cost

Opportunity cost is an essential concept to understand when studying Economics. Opportunity cost consists of everything that you give up when you make an economic decision. It exists in nearly every decision that presents itself and is clearly evident in Able 's decision in "I Knew a Guy Once" to remove Wheeler 's 'rules ' from the door, the growth of the Shenzen people from a population of zero to over 9 million in 30 years, and in my decision to take this class. In all of these cases, the decision-makers had to first consider opportunity cost before making their decisions. In "I Knew a Guy Once", by Tanya Huff, Able makes many decisions that dramatically change the way the bar runs. Among these wild changes, Able decides to take down the

In roughly thirty years, the city grew from a small fishing village in China to a world leader in global trade and commerce. When considering opportunity cost and how it relates to the boom of Shenzen, it is essential to first consider how much money and manpower it took to create the massive complex of buildings and companies that makes up Shenzen. The billions of dollars that were spent creating Shenzen, along with the thirty years it took to blossom, could have been spent on many different things. The opportunity cost of such an example includes everything that could have been achieved with the resources that were used to establish Shenzen as a world class trading city. World poverty could have been eradicated or perhaps world hunger, or nearly else could have been done with these resources. However, whoever decided to spend their resources on building the modern Shenzen, perhaps the residents of Shenzen or the companies that were responsible for the explosion of the city, decided that the benefits of globalizing Shenzen were more appealing than any of the alternatives. However, it is unlikely that the people who made this decision thought about options such as eradication world poverty because they were focused on world trade and modernization of a small fishing