The opportunity cost

By priyank

The opportunity cost is a basic economic concept. Which basically means that there’s a cost of opportunity not chosen if a choice is made amongst few options.

So the activity/product chosen should match or at least come close to the “not taken” route. Otherwise there’s a loss.

If the activity chosen is bringing subpar and undesired results. It is not only causing losses in outcome. It is also taking space of more profitable activity and making one miss on possibilties of far BETTER results.

For example, let’s say when you work on Process A , you not only stand chance to get suboptimal result in process A, you also miss out from great results from process B.

If i go to watch a movie which is boring. I am not only wasting time on this boring movie. I am also causing loss of time which could have been utilized to watch a good movie.

Not only you have to ensure that your investment of time and effort on process A is good enough.

It should also be better or close to process B. Or else you are bearing an opportunity cost loss.

Several people agree and realize that school system has serious problems. Still they send their child to school and expect child to “live life” after school and between holidays.

The school drains the child of intellect, energy, and learning gist. A child already spending his energy in school is not left with any energy to try other activities of leisure and play.

He also misses out of hundreds of other activities and processes.

Now, i am the last person to indocrinate anyone. But is it rocket science to realise and understand how school is causing a big opportunity cost to miss out from REAL learning, REAL experiences?

Besides, children need rest and leisure so they can hibernate and reboot with more energy. But too much work just causes a sluggish process.



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