Opportunity cost can be defined as “the value of the choice of a best alternative lost while making a decision.”
Or, more colloquially, it’s “what you could have done if you had chosen differently.”
I’ve talked before that one should consider the opportunity cost. But considering is one thing; how do you calculate the opportunity cost?
I had this put to me in a meeting with someone I was coaching. (Don’t worry, I got her permission before posting here!)
The question concerned an upcoming trip, with a cost of $300. The prospect of warm weather, from the vantage point of a city blanketed by snow, was compelling.
But what would she be giving up by doing this flight of as-it-were fancy?