economic principle of "opportunity cost" can be defined like this:. Amount of other products that must be lost or sacrificed to produce one unit of product
and virtually ... ?
In order for us to understand this principle, we must realize that the fundamental principle of economics builds off because we can not have it all, we must decide what we have and we will forego.
Have you ever heard the expression: "there is no free lunch?" Think about it ... even in a situation where you have a friend pay for you to go out to lunch, it's really still at large? Well, for you, but that the person who pays for it gives the x-amount of dollars, which means you need to do x-amount more! So, nothing is truly free, everything has a price to be paid. This kind of sacrifice is called "opportunity cost ."
Again, practically speaking, this means ... ?
to get more of a good thing, you have to forgo the possibility of getting the next best thing. From the perspective of time management, you need to know in advance what the most before you make decisions. Because, again, based on opportunity costs of all our decisions, there is always something that is sacrificed.
Consider this: you have decisions to make. It's Saturday night and your friends want you to go to the cinema. You know, however, that you have to study for your test on Monday, in fact, if you do not study for this test for several hours on this Saturday night, you will definitely get a "C" in class.
You decide to go to the cinema.
What is opportunity cost? Or, in other words, what you sacrifice in making this decision? Cost of your scholarship for next semester because you chose "C" in this paper, which dropped his GPA enough to throw their chances for a scholarship.
and how it relates to time management? Since all of us faced with managing our time over the method of making, we are constantly sacrifice one thing or another in choosing what we think is "best" in certain circumstances.
Make sure you understand, using the principle of "opportunity cost", which is most important to you in life before the sun comes and decisions should be made.