Hi all friends!!!
On this occasion I want to write about Opportunity cost. Talking about the problem of lost opportunity costs and costs found one day, that is not a normal thing but has become food for people who open their businesses. Opportunity costs are costs that arise because of lost opportunities resulting from fulfilling a need for another. This opportunity cost arises because of the choices made individually and by society for the scarcity they face.
For example, if more of society's or natural resources are used to produce food, there will be fewer resources to produce beverages. Because human resources or the human economy are very few and very limited, so they make choices in their lives. This choice is a very big sacrifice that is made by everyone and this opportunity cost is what will be the measuring tool to determine the production costs that are issued.
As for some of the characteristics of opportunity costs such as calculating are not associated with money, but can be associated with happiness, time and benefits that will be obtained in the future, then we must have many possibilities related to its use. And these opportunity costs are generally secondary and tertiary needs. Then the benefits of opportunity costs such as opening business opportunities and minimizing risks.
By taking advantage of this opportunity cost, we can make comparisons in making decisions that we feel are suitable or not suitable, so that it doesn't carry a big risk factor if it happens one day and we won't be surprised anymore later. And in the business world, it is certain that we have experienced risks such as loss of goods that are not selling well.
However, with the opportunity cost, we can control the risks that we will face later because it is impossible to completely eliminate them. Then the calculation of this capital becomes one of the smooth running factors of the business. Moreover, nowadays it is very easy for us to get capital to open a business, they even invest as much as 10 million for us to open a business with terms and conditions in force.
With a large amount of business capital, it will produce very perfect results later. Therefore, if we want to open a business, we must think first and learn from our friends who already have a business, because this business is the velocity of money where goods are sold. sooner or later because with sales that sell quickly, we get big capital and profits and it depends on us in terms of how to manage a business at home.
And this opportunity cost is also the value of our sacrifice from working hard to become someone who is successful later. Basically opportunity cost should always give us profit every day. If we look at it from a cost perspective, the lowest cost or burden option is an alternative cost, whereas if we look at it from a production perspective, we choose which sector can be used to produce more products.
Maybe that's all for this post, see you in my next post.
