Opportunity Costs: How we often misconstrue 'real' costs

Opportunity cost is a concept very famous among microeconomists. It is the true economic cost of

any decision. It is usually calculated by considering the value of the best forgone opportunity.

Example: Harry Styles is playing a free concert in town which you decide to attend. Taylor Swift is

playing a concert with a ticket cost of $40 each. Any other day, you’d have to pay $50 to attend a

Taylor Swift concert: the net value of that best forgone opportunity is $10. Thus, the true

opportunity cost of attending the Harry Styles concert is not zero but $10.