Question

I am trying to understand the Opportunity cost. Can anyone help me please? I can't seem to get Economics, I really need help. You work as an assistant coach on the university swim team and earn $15 per hour. One day, you decide to skip the hour-long practice and, instead, go to the county fair, which has an admission fee of $9.

Answer 1

Basically "Opportunity cost" is what you're going to lose (or have a potential to lose) if you chose a different action than what you're presented with. In the example, you're working for $15 an hour, but if you decide instead to skip a pratrice to go to the fair you're losing out of the $15 an hour you'll be paid and have to pay $9 to go to the fair. All total, you're opportunity costs for that will be $24 (fifteen you would have made plus the nine dollar fee.) This is also assuming, of course, they don't fire/dock you for just skipping work.