Is there ever a situation in which the opportunity cost is none?
I actually have wondered about this as well Tony. On the topic of making certain economical choices, it is likely that this is not the case. However, if this could ever happen in a real world scenario, how would it play out? I think that in many common choices that we make every day, we often overlook the opportunity cost so much that we may theorize that there is none. As any economist would say though, "it is the unseen that takes the toll on society when the seen is put front and center most often". I would also add that situations like the broken window fallacy always have an opportunity cost, that is why it is a fallacy in the first place because people say that it "helps the economy". In different scenarios, the opportunity cost could change so that is why I have come across what Antonio is also wondering about. It will be interesting to see what Professor Weaver has to say about this.
TINSTAAFL
There
Is
No
Such
Thing
As
A
Free
Lunch
Economists use that phrase to answer your question. There is always an opportunity cost. I wager that sometimes the opportunity cost is *relatively* nothing, but only in a relative sense. For example, checking the weather on my phone, on the margin, has an opportunity cost so little (the calories I could have not spent to put my phone in front of my face, swipe up, and tap an app) that it is relatively nothing, but it does cost me something. This is also a great example of how the opportunity cost of checking the weather has changed. Before we had smart phones, I may have had to consult a farmer's almanac, make sure I was around during the weather segment on the news, etc. The opportunity cost of checking the weather has decreased sharply in the last 15 years!
There
Is
No
Such
Thing
As
A
Free
Lunch
Economists use that phrase to answer your question. There is always an opportunity cost. I wager that sometimes the opportunity cost is *relatively* nothing, but only in a relative sense. For example, checking the weather on my phone, on the margin, has an opportunity cost so little (the calories I could have not spent to put my phone in front of my face, swipe up, and tap an app) that it is relatively nothing, but it does cost me something. This is also a great example of how the opportunity cost of checking the weather has changed. Before we had smart phones, I may have had to consult a farmer's almanac, make sure I was around during the weather segment on the news, etc. The opportunity cost of checking the weather has decreased sharply in the last 15 years!