Read the following responses on the topic of “Opportunity Cost in your life”. Reflect and substantively comment on each of the posts. Support your statements with evidence from the required studies, other research, and experiences. (2 REQUIRED SOURCES PER RESPONSE)=4 total!
Response Guidelines:
Your responses to your classmates’ postings must be approximately 130 words; and be thoughtful, substantial, and polite – not just a “well done” phrase or “I agree.”
Discussion 1: Writers name- Jason
“The biggest opportunity cost situation I ever had happened in 2002 and it didn’t involve money. I was in college working on getting a degree when we went after Iraq and Afghanistan after 9/11. My opportunity cost was deciding to join the military or finish college. On one side I wanted to join the Marines and join the fight, on the other hand stay in college and finish my degree. I was a young man who if I was going to join the military, now was the time to do it. I could always come back and finish my degree later in life. I made the choice that the utility I received from joining the Marines was greater to me then the utility I received from finishing college at the time. So, I dropped out of college and joined the Marines on active duty. Now, after being in the military for 20 years now I feel that the law of diminishing marginal utility has kicked in a little bit. However, now that I’m working on finishing college, the utility I get for having a retirement paycheck for the rest of my life plus the experience I’ve gained while being in the military for my next career has made that choice 20 years ago the best choice I’ve ever made.”
Discussion 2: Writers name-Jalen
“When Eric (my brother) graduated from college, he landed a job in a new city and faced a decision between two apartments. One apartment was spacious and centrally located but slightly over his budget. The other was more affordable but farther from his workplace and smaller. Eric went through these steps to make his decision. He listed his priorities—proximity to work, budget, and living space. Eric valued convenience and comfort but also needed to stick to his budget. He carefully reviewed his finances, factoring in rent, utilities, transportation, and other living expenses. He calculated how much he could comfortably spend on housing each month without stretching himself too thin. Eric visited both apartments, noting the commute time, neighborhood amenities, and overall feel of each place. The centrally located apartment had trendy cafes and easy access to public transportation, while the more affordable option was in a quieter neighborhood with fewer amenities but closer to nature trails he enjoyed. He sought advice from friends and family who knew the area and his circumstances. They shared their experiences with commuting and living costs, offering practical insights into daily life in each location.After careful consideration, Eric chose the smaller, more affordable apartment. While he liked the central location of the other option, he realized the financial strain it could cause. He prioritized financial stability and decided the longer commute was a fair trade-off for staying within his budget and having more financial flexibility. Living in the smaller apartment meant Eric had a longer commute, spending about an hour each day on public transportation. Initially, he found the commute tiring, but he soon adjusted by reading books and listening to podcasts during his travel time. The more affordable rent allowed him to save more money each month, giving him peace of mind about his financial future. He also discovered hidden gems in his quieter neighborhood, like local farmers’ markets and hiking trails, which enriched his weekends. In retrospect, Eric felt confident in his decision. While the centrally located apartment would have been more convenient, choosing the more affordable option aligned with his financial goals and provided unexpected benefits. It taught him valuable lessons in budgeting and prioritizing, setting a strong foundation for his new life and career in the city.
NetSuite.com. (n.d.). Why opportunity cost matters. Oracle NetSuite. https://www.netsuite.com/portal/resource/articles/accounting/opportunity-cost.shtml#:~:text=Opportunity%20cost%20is%20money%20or,over%20another%20may%20affect%20profitability.
Opportunity cost. Econlib. (2023, December 20). https://www.econlib.org/library/Topics/College/opportunitycost.html#:~:text=When%20economists%20refer%20to%20the,the%20money%20on%20something%20else.”
