As at this very moment, you have a choice to read this piece or go over your Twitter Timeline. Not both. In life, we are presented with options and it is up to us to decide what we want to keep and what we want to lose as a result of keeping what we decided to keep. That, is what economics call Opportunity Cost. If you went through the Kenyan 8 – 4 – 4 System, there is a high chance you came across the word Opportunity Cost, probably during a sunny afternoon Business Studies Class. However, for the sake of those who did not pay attention, let’s define the word. Opportunity Cost is defined as the loss of one alternative when one alternative is chosen. Most people wonder, why do I have to lose other alternatives when I settle on one? The answer is simple. Decisions are simply choosing what not to have at the expense of what to have. Unfair, right? Well, life is unfair. I have heard this sentiment times too many that anytime someone begins a sentence with the words ‘Life is..’, I feel the urge to complete the sentence for them. The moment you understand […]
