Opportunity Cost the most desirable alternative given up as the result of a decision
Trade-offs an alternative that we sacrifice when we make a decision
A Decision-Making Grid helps you determine whether you are willing to accept the opportunity cost of a choice you are about to.
Example is you ethier sleep late or get up early to study for a test.
Decision-Making Grid |
Alternatives |
| |
Sleep late |
Wake up early to study |
Benefits |
- Enjoy more sleep
- Have more energy during the day
|
- Better grade on test
- Teacher and parental approval
- Personal satisfaction
|
Decision |
|
Wake up early to study for test |
Opportunity cost |
Extra study time |
Extra sleep time |
| Benefits forgone |
- Better grade on test
- Teacher and parental approval
- Personal satisfaction
|
- Enjoy more sleep
- Have more energy during the day
|
|
