You made the choice with the lowest "Opportunity cost".
Step-by-step explanation:
Opportunity cost in simple terms, can be explained as "You get one by losing the other".
So why this opportunity cost is necessary? Let us understand.
This plays a significant role in "Personal finances". This is the effective part to be learnt to make decisions on finance.
Some of the real life examples are listed below:
- Attending the interview is important than attending an entertainment event
- Only if you spend time and money you can see a movie
"Theorie der gesellschaftlichen Wirtschaft" coined the word "opportunity cost".