Opportunity Cost

Prof. Mario Villarreal-Diaz explains the scarcity inherent in the world, and how this necessarily implies a world of tradeoffs.  In such a world, the pursuit of a choice requires forgoing all other potential choices.  Opportunity cost is simply what is given up when a choice is pursued.  This is an important concept, as it provides guidance as to where scarce resources will be more productive.

6 Comments

  1. Emerson Howard

    Mario is the best!

  2. Emerson Howard

    I wish this was more common sense.

  3. Kevin Burctoolla

    this is best video ever.

  4. Jonathan Taylor

    This is common sense! It’s just something that people are conditioned to ignore.

  5. Noah Smith

    kitty

  6. taschrant

    I wish this kind of stuff was taught in schools.

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