As I read through chapter 7 I started thinking more and more about opportunity costs. I tried to come up with a real complex example of a real world experience that could apply to most people, well, besides the opportunity cost of going quitting a job and earning a degree which is in most textbooks. But I face an opportunity cost almost every 3-day weekend. I grew up in a small town in Northern Utah where it takes about 6 hours to drive home to see my family. From Cedar City, you can make it to the beach in 6 1/2 hours. I love seeing my family but I also love hanging out on the beach.
The book defines an opportunity cost as the net revenue from the best alternative course of action. In my situation of either going home or to the beach I replace the word revenue with benefit. So this is how I weigh my difficult decision: Gas to each place is about the same, the weather is almost always better in San Diego, and going to California seems like more of a road trip and different experience then going home. So on a 3-day weekend, I usually go to Huntington Beach or San Diego instead of home. It's not that I love the beach more than my family, it's just that the opportunity cost is better. What are some opportunity costs that others in the class face?