A brief glance on implicit and explicit Opportunity cost

[uneng]

I'm not sure if I got it, but explicit means the decision, the choice itself, and implicit means the motivation behind the decision or choice made?

Every actions and decisions are connected in a society. What happens to you, affects me somehow in the end, that is true. Even the rejection of the guy by the woman he desired will end affecting society somehow. Each case in one case, but a possibility is that frustrated men tend to be less creative and productive, what will inevitably impact their job and another aspects of life.

Actually, it's worthy noticing it's already a common phenomenon in modern society, where the frustration of many individuals end resulting is less social interactions, hopelessness and apathy.

[EluguHcman]

~snip

Your topic is all about priority choices and affordability. Everyone will settle for personal choices over what will benefit the economy.

OP was basically emphasising on personalities and individual races which I don't think how to comprehend it to be resourceful in a general economy as was demonstrated.
I have also come to understand that I life, nothing goes for nothing instead, there is always reason behind everyones decisions only that those who are not part of the plans won't find it worth.

Do you know that Paranoid psychological persons could be seeing the reality because he is awake in the other world but because others seems to still be asleep in that same World won't convince then to believe it because there is no realistic evidence to prove as claimed? It is still part of the personal races in life which the societies don't even give a damn to consider interesting.

Let's say you own a manufacturing company that requires 100 laborers and produces 1000 cartons of goods in a day, you had the opportunity to own a machine that does X10 the work done compared to human efforts, do you handle the situation by neglecting the machines to keep them employed, or are they immediately robbed of their jobs? Dropping them from the job automatically makes them unemployed, and we know what increase rate of unemployment does to the economy.

As an entrepreneur person, I will definitely go for the one that will give better services in both efficient results and saving expenses.
So if the machine will do better than human intervention then I have to consider the cost price and expenses in servicing the machine.

Every plus and minus probabilities shall be put to considerations before taking my decisions while my prospects as a business person is made a prior and not the general economy nor the employments.

[Egii Nna]

Explicit stands for the products we choose to buy over another product, how we prefer to say I'd get rice instead of meat, give me Adidas I do not want Nike, indirectly tells us that economics is more about choices and decision making. These choices and decision connects to contribute to the overall micro and macro economy. It's like the body system, all parts of the body connects to keep us healthy. The decision to spend $100 on a per of shoes connects with another person's decision of spending that same $100 on a book to facilitate the supply chain. People must give up one product to have another, but the best part of this type of opportunity cost is that it teaches us how crucial our self interest is to the economic flow of our nation.

Talking about choices and decision making about things like this, the small individual choices do influence the economy somehow because if the citizens of the country mostly prefer choosing imported products like let’s say imported shoes or cars more than the local or home made ones, then it will make the economy heavily dependent on imports which is not exactly good for the economy of the country.

The Explicit choices we make actually do influence the economy and if we understand that then we might begin to support the Local brands and help our country’s economy with every choices or decisions that we make. This is another angle to this discussion, I also remember India recently urged their citizens to stop buying Gold because they are one of the biggest importers of gold and it was affecting their economy, they even raised their import duty to discourage the imports.

[slapper]

Interesting framing but I want to question the assumption that is behind all this. Opportunity cost is a matter of products and allocation of time. The idea you are describing is related to identity construction. And economics just happens to be the language we use to talk about it.

When you say "she chose you over your friend". Seem to me a preference revelation. In 1938 Samuelson developed an entire theory based upon this. Individuals express themselves through their selections. Not what they say they value, not what they think they would do. The actual actions they take when choices are presented to them. Your Nike vs Adidas example is about who you think you are. It get performed through spending.

However, sometimes individuals do not make decisions for self-interest reasons. Occasionally, you choose something due to social pressure, obligation, moral commitment or simply habit. Amartya Sen called it capability - what you are actually free to do vs what you end up doing. And, in many cases, it is the actual cost difference between those two.

[Nothingtodo]

I understood your topic as much as I could, but I did not understand anything after reading your article, rather I did not find any consistency in your comment with what you meant.
But let me tell you how money cannot be a resource because we can exchange most of the resources with money, so money can be called a resource indirectly and directly. Just as money can meet your needs, you can exchange the resources you need for money.
If you have a demand for a product and your supply and money are allocated according to that demand, then you can take advantage of it. But in this case, you can choose an alternative product and a product of the same quality. That is, your implicit and opportunity costs will mainly depend on the alternative use of your product. Sorry, I failed to understand your topic and comment. My knowledge in the fields of money, finance and banking is limited.

[jcojci]

I hope I am not wrong to understand but I guess this is about human choice how they choose the option to buy. But if I had to choose between Android or Apple, I may choose Android because it is cheaper than Apple. I buy goods because of the advantage and not because to show off that I have a branded goods. That can makes me always follow the trend and buy the goods because that can impact to how I manage my income. Usually, I buy goods for example laptop or mobile phone when I really really need it and replace my old one so I don't have get trouble in my busy day.

[justdimin]

Opportunity cost works with preference, what do you mean I confused it with preference. I don't think I ever mentioned anywhere that the person won't necessarily need what they traded off, go through the first line of the thread. In simpler term, whatever thing or activity you'd say, had I owned the opportunity, I'd get this or do this, falls under opportunity cost.

I believe that he didn't "misunderstand", but he understood just some parts of it and didn't understand some others; that is a bit different from misunderstanding, which is understanding half of it. He understood the fact that you have a limited choice, like this or that, which is what you talked about, and I agree with that, but he didn't understand the part about the rest, where you would have to realise that it's not about what you choose, but also about what you did not choose.

Because while you may even be happy with what you choose, you may have missed something even more later on. Think of it like a trade. For example, you bought something for 10 dollars, and now it's 20 dollars; you have two options: either sell now and make a profit, or wait and maybe it goes up.

If you sell, you made double the profit, a good choice, but that doesn't mean that it didn't go to 30 after you sold; that means you could have done even more with the other option. So one option being good doesn't make the other option bad; in anything in life, you could have two good options, one even better than the other, but both of them good. That is not always understood; people automatically think you either pick good or bad.

[Emitdama]

I hope I am not wrong to understand but I guess this is about human choice how they choose the option to buy. But if I had to choose between Android or Apple, I may choose Android because it is cheaper than Apple. I buy goods because of the advantage and not because to show off that I have a branded goods. That can makes me always follow the trend and buy the goods because that can impact to how I manage my income. Usually, I buy goods for example laptop or mobile phone when I really really need it and replace my old one so I don't have get trouble in my busy day.

You may; not everyone does. Like for the example you gave, you may prefer android over iphone, which is the right call for both price and also the machinery at hand, there are better android phones in every feature, from camera to system it works on, to rams, to basically every single detail, and also cheaper at the same time, and yet when you look at it, iphones still sell a lot to make apple one of the biggest companies in the world. Which tells us that not everyone buys as you do, not like I do. I have a phone that cost me 40 bucks. I do not need anything from a phone. I am not working with it.

My phone should be able to call people up; that's it, that's all I need from it. But even if I wanted more, better options are available. That's not what everyone thinks; there are so many people who end up with iPhones because it is a status symbol for them. Having an iPhone doesn't make you great, but having Android makes you look poor, and that applies in the USA a lot from what I can see on the sales numbers, but it is true in some other parts of the world as well. Which is why I would say that while you are on the right path, there are not that many people who are.

[Accardo]

I understood your topic as much as I could, but I did not understand anything after reading your article, rather I did not find any consistency in your comment with what you meant.
But let me tell you how money cannot be a resource because we can exchange most of the resources with money, so money can be called a resource indirectly and directly. Just as money can meet your needs, you can exchange the resources you need for money.

Opportunity cost is a complex topic, I'm not surprised with the diversity in responses found on this thread, gladly a lot of them are related, the only difference being that some people still argue over money not being a resource. Take this example, money can buy a land, that's true, but can money produce a land? That's the point of resources. Men build machines through intelligence and steady hardwork, money is just a means of purchasing machines from the producer, not the producer it self.

[HyperCodexV]

We live in a world of scarcity, and limited resources, the discussion here is about the ways we go about purchasing and doing all that we want to achieve with the limited resources we have. Talking about resources money is not involved, it's not a resource. On a basic term, Opportunity cost is the yes we say to one product or activity that translates to saying no for another product or activity. It comprises of two types; explicit and implicit.

We generally think opportunity cost is about money but f you take a second look at it, then you will realize it is really about priorities because the things you choose to do or buy say a lot about what you value most at that moment. The real cost is not just what you give up but what you might never get back like a missed chance to learn something new, a relationship you didn't put effort to nurture or time you can't recover. Maybe instead of focusing on what we lose, we should instead think about whether what we are choosing is actually worth it.

[Qastessa]

Scarcity isn't limited to money. Time, attention, energy, and even opportunities are limited resources that people are constantly making trade-offs with, whether they realize it or not.

Choosing to spend two hours learning a skill means giving up two hours that could have been spent working, relaxing, or doing something else. The difficult part is that we often don't recognize the cost because there isn't a price tag attached to it.

In fact, time is even more scarce than money. You never get time back; when it is gone, it is fully gone, and that is one of the worst things in life. I have spent my last 5 years either in a hospital or working, nothing more. That is not life, and I have been having some depression problems because of it, and when I went to see a psychologist, it turned out to be something very normal.

Because when you spend your entire life either working or at a hospital then why wouldn't you have depression and I started to take some anti-depressants, but I did not feel ok about myself and I did not feel like mentally I was there and my work requires me to be able to think, so if I continued then I would not be able to do my job, hence I had to stop. This, of course, did not feel ok that much, but the reality is that I am still quite depressed and sad, and I am still spending most of my life either in hospitals or at work.

The thing is, for the past 5 years, I am not going to hospitals for the same reason, for 2-3 years it was something else, but then it happened to be other things, like constantly it changed, and not just me, my spouse as well, so we had to go to hospital for a dozen different reasons and even just last week, we had to because spouse had super high fever and had to be taken to hospital. So that is healed; tomorrow a new thing comes up, we heal that, another thing. I am constantly at hospitals for one reason or another, and if not, I am working for my job. I do not have a "life" left.

So yeah, money is easy: you work, and you earn. Even if you go into huge debt, you just get up, grind, work, and earn. But time? Time is going, and we are never getting it back, and that upsets me.

[iv4n]

To retain the spark of this conversation, it's important we share for future traces, what and what we give up for another, are you a Nike guy, do you prefer Bitcoin over Solana, did she choose you over another guy, probably yes, what would you prefer to do with a $100 bill, would you buy a shoe, go to the cinema, or buy some clothes etc. There are millions of alternatives we give up on a daily basis due to limited resources and scarcity, how do you cope, do you say next time I'd do this or get this, I don't have the money now, does it bother you? please share. Thank you for reading this piece, I'm happy about that. 

You can't try everything... rich people can try more things, they can afford it, but even they can't try "everything". We are limited by the design... that's why life is full of choices, important ones... and a zillion not-so-important ones, but they matter too. I guess each of us must learn to live with what we have, to accept some things, and simply to make choices that will be beneficial in some way... Life is a learning process, we never stop learning & discovering new things in life, new perspectives. And if you do everything right, you will be at peace with yourself, and you can be happy with where you are & what you have around you.