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I don't understand this question: Opportunity cost can also be expressed as a rate when the benefit is a rate of return You're deciding on a savings account & your options for interest rates are 2%, 1.5%, and 1% What is the opportunity cost of selecting the 2% savings account?

Romano

@RNR_0

Oct 30

The answer is 1.5% apparently Opportunity cost is just the benefit of the best-unchosen option because you can’t get both the 1% and 1.5% rates of return on the same money You're forced to pick only one rate to invest in & miss out on the opportunity to invest in those others

SBF

@SBF_FTX

Replying to

@RNR_0

yea basically op cost is "how much would I have made instead if I weren't doing this"

3:51 AM · Oct 30, 2022Twitter Web App

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UnterseeBankofSwitzerland

Replying to

and

It's not a "cost" if you get a higher rate of return though. That's a benefit. It seems like an illogical "trick" question based on strict adherence to definition, likely posed by a lazy academic, to me.

Replying to

and

It’s a cost in the sense that the next best opportunity had been forgone You paid with the choice / opportunity of being able to get 1.5 instead of 2

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