Opportunity Cost

Here the opportunity cost of Studying would be the time you could spend in leisure

• Opportunity cost is an economic idea that some form of allocation of a resource means you are letting go of a different use of that resource. The benefit lost from the other alternative is known as its opportunity cost.

Although this is an idea spoken about in economics, I think it applies to a lot of our lives in a lot of ways and potentially could help someone improve their productivity. Consider your morning routine, what is the opportunity cost of you having a lie in over getting up early? Potentially the prospect of getting more work done while you have very limited distractions. Even after getting up, what is the opportunity cost of you spending time watching youtube? It would be the time you could have spent working or doing something productive. The way to calculate your opportunity cost would be through the equation:

Through this equation this means you could assess which option you think is the best by assessing their interest return and then choosing the option with the highest return. This pause where you think about the benefit each task creates is important because it means your priorities are in the right place and so you can gain the most benefit from your allocation of time which in this case is the…