Optimal decision-making and opportunity costs | AP(R) Microeconomics | Khan Academy

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A rational agent considers all costs, including explicit and implicit costs, when deciding whether or not to undertake an action. In this video, learn about how opportunity costs represent the cost of the next best alternative.

AP(R) Microeconomics on Khan Academy: Microeconomics is the study of individual decisionmakers in an economy, such as people, households, and firms. Learn how markets work, how incentives drive decisionmaking, and how market structure influences market outcomes. We hit the traditional topics from an AP Microeconomics course, including basic economic concepts, markets, production and costs, profit maximization perfect competition, imperfectly competitive market structures, game theory, factor markets, and income inequality.

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[marijatosic]

Is this video a part of a playlist? Thank you!

[jasv]

What if you chose to work instead of watching the movie, how would you call that effective $100 gain? Opportunity profit/benefit or something like that?

[cokefudge]

Shouldnt it be the "cost of giving up the next best alternative" instead of "cost of next best alternative"