Demonstrating Opportunity Cost Is Done Through Production

Let's face it, we all love a good deal. Finding something we want for less than we expected feels like winning the lottery, right? But what if I told you that every single thing you choose to do, buy, or even think about involves a hidden price tag? And no, I'm not talking about the actual money you spend. I'm talking about something far more sneaky, far more pervasive. I'm talking about opportunity cost. And my unpopular, yet totally obvious, opinion is that you can only really see this sneaky cost when we're busy making things.

Think about it. When you’re just sitting on the couch, scrolling through endless cat videos, what are you giving up? Maybe a quick nap? A snack? A brief moment of existential dread? Sure, those are things. But are they real sacrifices? Not really. They’re more like… fleeting possibilities that never really solidified into anything. It’s like staring at a buffet and deciding not to eat anything. You’re technically giving up food, but until you actually pick up a plate and put something on it, the "cost" feels pretty theoretical.

But then, oh boy, then comes production. This is where the rubber meets the road. This is where opportunity cost throws on a tiny, invisible cape and flies around shouting, "Look at me! I'm costing you stuff!"

PPT - Scarcity, opportunity cost, Production Possibilities Curves and

Imagine you have a brilliant idea. You want to bake the most epic batch of cookies the world has ever seen. You've got the flour, the sugar, the chocolate chips. You're ready to roll. But suddenly, a wild thought appears: "What if I spent this time learning to juggle?" Now, juggling might sound fun. You could impress your friends, maybe even get a gig at the local circus (hey, a guy can dream). But to bake those cookies, you need to dedicate your precious time and energy to, well, baking.

And that's it! You’re producing cookies. By choosing to produce cookies, you are directly giving up the opportunity to produce… juggling skills. See? Production makes it painfully clear. Every scoop of flour, every melt of butter, every precisely placed chocolate chip is a little flag saying, "We could have been juggling right now, but nope, cookies it is!"

It’s not just about cookies. Think about a small business owner. Let's call her Brenda. Brenda has a fantastic idea for a new line of artisanal pickles. She’s got the brine, the dill, the cucumbers. She could also, theoretically, spend her time creating a viral TikTok dance. She could be the next internet sensation, raking in endorsements and free merchandise. But Brenda decides to pickle.

And in that moment, as she’s carefully arranging cucumbers in a jar, the opportunity cost of not dancing is glaringly obvious. Every minute she spends brining is a minute she’s not perfecting her moonwalk. Every jar of pickles she seals is a jar less likely to be replaced by a video of her doing the Floss with a jar of pickles.

This is why economics folks get all excited about production possibilities frontiers and all that jazz. They're basically drawing fancy graphs showing all the stuff you could be making. And any point you don't choose to make represents the opportunity cost. It’s like staring at a menu and realizing that by ordering the delicious pasta, you’re forfeiting the equally delicious pizza. The production of pasta means the forfeiture of pizza.

Let’s take it to a grander scale. A country decides to build a new highway. They’re pouring concrete, employing workers, diverting resources. What are they giving up? Maybe they could have used that money and those workers to build a brand new hospital. Or invest in renewable energy. Or even just give everyone a really, really nice vacation. The production of that highway directly means the opportunity cost of whatever else they could have produced with those same resources. It’s not just an abstract idea; it’s a tangible trade-off. The concrete is there, the workers are busy, and that means the hospital isn't being built right now.

It’s easy to talk about giving things up when you’re not actively doing anything else. But the moment you commit to creating something, you’re putting a neon sign on what you’re not creating.

Opportunity Cost

So, the next time you see someone slaving away in their workshop, painting a masterpiece, or coding a new app, don't just admire their creation. Marvel at the silent, unseen sacrifices. They are not just producing art; they are demonstrating opportunity cost in its purest, most tangible form. They are actively choosing this to be, and therefore, that cannot be. And isn't that, in its own weird way, kind of beautiful? And also, a little bit terrifying if you think about it too much? Just don't think about it too much. Go bake some cookies. Or learn to juggle. Just make sure you're producing something, and you'll see opportunity cost strutting its stuff.