This mental model describes the process of choosing between competing options and the inherent costs of forgoing one choice for another.
Opportunity cost is a fundamental concept in economics that represents what is given up when you make a decision to do one thing over another. For example, if you choose to spend money on a vacation, the opportunity cost could be the investment you could have made with that money. Understanding opportunity cost leads to better decision-making by ensuring the comprehension of potential trade-offs and cost-benefit dynamics.
The cost of anything is the amount of life you exchange for it - Henry David Thoreau
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