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Opportunity Cost of Inaction Form

Opportunity Cost of Inaction Form

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Imagine the following situations: 1) A young man enrolls in a tuition-free public university. From his point of view he gets the education for free. He will study in a field of his choice for five years, and after that he will be granted master’s degree. 2) A freelancing website developer decides to renovate his flat on his own instead of hiring a renovation team for 1,000 dollars. He will spend two weeks doing it. 3) A good and respected baker leaves his job and sets up his own bakery. This will allow him to earn 24,000 dollars in the first year of his business. 4) Just after New Year’s Eve a man buys slightly discounted fireworks for 1,000 dollars. He stores them in his home, and sells them after a year for 1,030 dollars. On the surface it seems that each of these people have made a profit. The student acquired education for free, the freelancer saved a thousand dollars, the baker earned 24,000 dollars, and the last man sold fireworks with a 3% profit. But let us look at this fro

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