Opportunity Cost Essay

753 WordsNov 22, 20114 Pages
The article that I am using is “The opportunity cost of relationships”, it was posted on March 26th, 2010. In the first paragraph of the article, the author points out that it is typically easier to compare cost looking at their prices, so that people tend to consider cost for a decision in monetary terms. And then the author uses the example of an apple and an orange to illustrate opportunity cost. That is what you are giving up when you make a decision. The author further explains that when we decide to buy an apple, it is not just about how much money we spend on an apple, but it is also about how we value the oranges that we gave up in order to buy an apple. And this is a simple example of opportunity cost. In the second paragraph, the author describe how relationships have opportunity cost too, we have to give up a certain things in life in order to be in a relationship. Such as spending times with friends and family, time to exercise or meeting new people. The author uses a budget constraint graph to illustrate the trade offs of being in a relationship. The author assume that we have 8 hours of leisure time, and we will choose between spending it on everything else or spending it with our significant other. And there are tradeoffs for any movement along the line. The purpose of the article is to prove that there is an opportunity cost to every decision we make. And the author suggests that if people are single and are not happy about it, they should consider all the things that they didn’t give up to be in a relationship. This article illustrate the idea that we learned in chapter one, we learned that resources are scarce. Since time is a scarce resource, therefore, if we choose to spend more time with our significant other; we get less time to do the things that we like or other things that we could be doing if we are not with our significant other. Vice

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