Assessing opportunity cost involves:
1. Making choices and dealing with consequences: Opportunity cost refers to the value of the next best alternative foregone when a decision is made. When assessing opportunity cost, one must consider the trade-offs involved in choosing one option over another and understand the consequences of that decision.
2. Reviewing past decisions and changing them: Reflecting on past choices and their outcomes is essential in understanding opportunity cost. By analyzing previous decisions, one can assess whether the chosen option was the most beneficial or if another alternative would have yielded better results in terms of opportunity cost.
In summary, assessing opportunity cost involves evaluating choices, understanding consequences, reviewing past decisions, and considering alternative options to make informed decisions that maximize benefits and minimize potential losses.
