Saturday, March 28, 2015

What I have learned from the tricky opportunity cost question

  The tricky opportunity cost question mentioned in the previous two articles let me learned a lot.

  The first thing reminds me is: Cost is ubiquitous, although we always focus on those measurable. For example, it is easy to say the opportunity cost of forfeiting the current job and start a business. Because you have already known the salary of your current job. What's about the opposite? What's the opportunity cost of keep doing the current job? Hard to tell. But a cost difficult to measure does not mean it doesn't exist! For every activity, there are hidden value and cost and I need to figure them out objectively.

  The second thing reminds me is : Selling price is not the real value. Selling price is value the seller claims. And I should responsible for my own life. I should know the real price in my mind and decide if the deal is worth. If I receive a free concert ticket, I may normally look at the selling price of the free ticket first. Yes. Selling price should be the clue but should not be the crucial factor. I should ask myself honestly if I really want to see that concert regardless of the selling price. Even though the selling price is high, I will not see if it is worth $0 for me. On the other hand, it is no harm to see it, as life needs adventure. If I finally decide to see because of the high selling price, I should bear in mind that I am starting an adventure instead of asking for repay.

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