00:01
So before we get into the question, it's about opportunity cost.
00:03
Let's make sure we know what opportunity cost is, right? it's what you give up when you make a choice, right? that's the real cost of anything.
00:16
The cost is not necessarily the money that comes out of your pocket.
00:21
The cost is what you no longer do or are no longer able to do because you made one choice, right? so here we have a gas decision.
00:30
So this person faces.
00:32
Two options.
00:34
They can buy at 250 or they can drive elsewhere and buy at 230.
00:46
Those are my options, right? i have to choose one.
00:48
I need gas.
00:50
So which of these is right? i'm going to call opportunity cost oc.
00:55
Let's go through these answers.
00:56
A, oc non -existent.
00:59
This is wrong.
01:00
There is always an opportunity cost, right? the opportunity cost might be zero.
01:06
But it certainly exists, right? for example, one of the opportunity costs here is time...