Opportunity Cost Definition

First, I will try to define, in my own words, what I understand as opportunity cost. Money that is lost income, money that could be made, this is what I understand as an opportunity cost. Sexton (2013) gives us a good example to think of while using going to college or having children and one parent staying home with the children (p.40). Opportunity cost is the value of what could be another source of income that is lost due to certain circumstances with time lost in mind (p.40). This other source of income or alternative is not used if a person does certain things in their life (such as having children or going to college). There are benefits that have to be thought of plus what is lost.

I need to explain my situation so that I can get a better grasp of my opportunity costs associated with attending Bethel’s online program. I am 32, I have 3 children, all different ages, and I am a stay at home mom while I attend Bethel’s online program. I am not losing out on lost income of working a job, even though I could be, because I have a daughter who has had three liver transplants and she has health problems. She gets SSI for now so that helps and we are very blessed. Most people would see that as an opportunity cost because they rather be working a full time job, but I try to look at my situation positively and …show more content…
So for going to college on campus, I would need a car. I would have to decide between buying a brand new vehicle or going to face to face class. I guess I would be walking!..There would be debt to think about with any college whether it is online or on campus. THat is just fact and the debt is an opportunity cost. We have to think about this- is it worth it? Yes, I think it is worth it in the long run because I will end up with a degree and can continue on from there to earn more money after