Opportunity Cost is something that we forego or denied something else due to our limited resources.
We have unlimited demand, but the resources that we have will limit us from fulfilling our unlimited demand. Therefore, we have to forego something good for something better
"Say, if we want success or riches, we need to forego the comfort and luxury that fit our current standard of living. Save it. Invest in the right instruments and soon we will be rich." - This is called delayed gratification and it is the elementary forms of success of our Chinese forefathers when they come to the new world from China.
But, in current context, a rational guy should use his limited resources to fulfill the maximum of his aggregate utilities from the unlimited demands that he has or in other words use his resources to buy things or services that matter the most to him - nutrition, health, child education, entertainment, retirement planning or even estate planning in a form of will or trust.
So, different people will have different utilities. So, will have different needs to fulfills in his life with a different set of goals and objectives and planning before the inevitable.
"Make hay when the sunshine"
Good Luck! Amigo!
Yours sincerely,
Dr. Lion.
We have unlimited demand, but the resources that we have will limit us from fulfilling our unlimited demand. Therefore, we have to forego something good for something better
"Say, if we want success or riches, we need to forego the comfort and luxury that fit our current standard of living. Save it. Invest in the right instruments and soon we will be rich." - This is called delayed gratification and it is the elementary forms of success of our Chinese forefathers when they come to the new world from China.
But, in current context, a rational guy should use his limited resources to fulfill the maximum of his aggregate utilities from the unlimited demands that he has or in other words use his resources to buy things or services that matter the most to him - nutrition, health, child education, entertainment, retirement planning or even estate planning in a form of will or trust.
So, different people will have different utilities. So, will have different needs to fulfills in his life with a different set of goals and objectives and planning before the inevitable.
"Make hay when the sunshine"
Good Luck! Amigo!
Yours sincerely,
Dr. Lion.
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