Understanding Opportunity Cost in Decision-Making

Imagine you just received $100. You could buy a new pair of sneakers you’ve been eyeing,

or you could invest that $100 into a savings account earning interest. You can’t do both

— so, which do you choose? That’s where opportunity cost comes in — one of the most

important ideas in economics and personal decision-making. Opportunity cost is the value of

the next best alternative that you give up when you make a choice. It’s not just about

money — it’s about time, effort, and benefits you could have enjoyed

if you made a different decision. Think of every decision as a fork in the road.

When you choose Path A, you’re not just saying yes to it — you’re saying