Opportunity Costs For Lunch: Is Not It Cost It?

The whole point of TANSTAAFL is that everything cost something, whether you are referring to money, resources, labor, or time everything requires some sort of trade off. This directly applies to opportunity cost, which is defined as the highest valued alternatives that must be given up to engage in an activity. So a basic example for there ain’t no such thing as a free lunch would be to relate to the actual reference food. For instance lunch is not free and it is more expensive when you go and buy lunch instead of packing it. In order to pay for a meal you must have money, you usually earn money by working a job and by working a job you are giving up your time and energy. So the opportunity cost for lunch would be the labor and time spent

The first being that scarcity and tradeoff are a factor in every part of our life and always holds true. The second which is true a large portion of the time is that there is usually a catch. Focusing more on the first meaning of this phrase can explain a lot about the meaning in relation to opportunity cost. Another example of using the opportunity cost and showing TANSTAAFL would be if a manufacturer has two different ways to produce the same products; product option A is the most profitable bringing in 200 dollars per items but takes a 2 days to make. Product option B only brings in 50 dollars in profit but in the amount of time it takes to make one of product A there can be 30 of product B made. However, comparing the two products shows that even though the initial profits seems to be made by product A after a full analysis shows that product B have the competitive advantage. It is more profitable to produce product b due to the high volume the product can be made at, which leads to a higher profit. Although this demonstrates which a different theory we can use this to show opportunity cost. If the company would have gone with their original thought and produced a higher volume of product A than be then there is a very high cost they are wasting. There would be a loss in profit, time and