Opportunity cost and scarcity
I mentioned to you guys earlier that limited resources and unlimited wanted leads to scarcity and scarcity forces a person to choose between two different options which is opportunity cost.
For instance, if you had $10 and you could choose between an ice-cream and toy and you chose ice-cream, the opportunity cost of buying an ice-cream is a toy. Opportunity cost would never be in money value. Opportunity cost is the best alternate forgone while making a choice.
Options: Ice-cream or Toy
Opportunity cost of ice-cream is toy
Opportunity cost of toy is ice-cream
You can never say that the opportunity cost of ice-cream is toy
You can never say that the opportunity cost of toy is ice-cream