Opportunity cost is whatever you must be given up to obtain some item..Or it also can be desribe as “The cost of something is what you give up to get it”..Is that clear to you? When someone want to make decisions , it requires comparing the costs and benefits of alternative courses of action..In many cases ,however the cost of some action is not obvious as it might first appear.
Consider,for example, the decision to go to college..The benefit is you can get some educational,knowledge and a lifetime of better job opportunities..But what is the cost?To answer this question,you might be tempted to pay your fees on tuition,books,hostels or room and etc..Yet this total does not truly represent what you give up to spend a year in college..
Actually , the answer includes on some things that are not really cost of going to college..Even if you quit school, you need a place to sleep and food to eat..You get what i mean? Indeed , the cost of room at your college might be less than the rent and food expenses that you would pay living on your own..In this case , the savings on room and foods are benefit of going to college.
When making any decision, such as whether to attend college or just stay at home and make money online such as Titan , Labanon or Ammar Zahar…The decision makers should be aware of the opprtunity cost that accompany each possible action..Another examples , college athletes who can earn millions if they drop out of school and play as professional are well aware that their opportunity cost of college is very high..It is not surprising that they often decide that benefit is not worth the cost..Education is priority maaa….
I can give you some example of opprtunity cost :
+ Labanon – Skips to continue his study in university therefore he can make money online more.
+ Ong Beng Hee – He drop out from PMR and continue his training to be a pro squash player.
+ Nicole Ann David – She wants to be the world No1 ranking then she quit study although she has Straight A’s in her SPM.
+ Me – I wish to stay at home and have a long holiday for 4 month to be serious on make money online but then I accepted a scholarship in Bachelor of Business Management (Majoring Entrpeneurship) at Bank Rakyat School of Entrepeneurship.
P/S : From now , my blog will posting some information from the point of view of a CEO
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