How to calculate opportunity costs

This video goes over the process of calculating opportunity costs. Generally, opportunity costs involve tradeoffs associated with economic choices. Specifically the opportunity cost is the value of the best available alternative (that you have given up). This video goes over my personal method to make sure the opportunity costs are calculated correctly.
More information about this is available at: www.freeeconhel...

[@FreeEconHelp]

Thank you so much for watching this video! I hope it was helpful :)
If you have any questions, please leave them below and I'll do my best to address them.
As always I really APPRECIATE the "thank you!"s, LIKES, and SUBSCRIBES! They keep me going :)
Have a great day and good luck on that exam!

[@MandeepKaur-ds3np]

Sir please let me know how opportunity cost of 1tv is 1/2 chair .when we divide 5/10 it give me answer 2 or 0.5 but not 1/2. Please help me sir

[@reybambampow3514]

You taught me in 5 minutes what I been struggling with for nearly 5 hours with the crappy textbook they gave us

[@FreeEconHelp]

Thanks!

[@CeynteShow]

me too, that was helpful.

[@melissavincent7952]

For some reason I couldnt wrap my brain around this calculation on my own, and this video helped SO MUCH. I can't thank you enough.

[@FucheGewgle]

Me too!! I am way dyslexic! This helped me a lot!

[@bradylisle1810]

I spent an entire semester trying to understand this for microeconomics, got a LOW C in the class, almost switched majors because i couldn't grasp this fundamental concept. I started taking macroeconomics and you taught me in a way that I finally understand.

[@sabinabujoreanu2607]

It's late at night r.n and I have an economics test tomorrow, and I was about to freak out that I don't understand how to calculate OC but then I found this video. THANK YOOOU , YOU JUST SAVED ME!!!

[@ChemSquid]

Thank you so much for this, I love how you've broken it down enough to understand exactly how it should be done.

[@ryanbeckwith6137]

The way in which you find the Opportunity Cost in this video is a really great way to not only check your answer but make sure your retaining the knowledge. Thank you so much, I appreciate you.

[@kellymartinez159]

Thank you so much, ten videos later no one BOTHERED to say HOW to do it. Easy method, clear. no fluff just info. THANKS MAN!!!

[@kimmmm3n]

I passed my microeconomics exam because of this method. I got full score on this question on the exam due to this method. And that helped me to make me pass the total exam!
Thanks!

[@oliviatiritilli5800]

People like you make the world a better place! thanks for the help!!!!

[@adriannaz3898]

I struggling about 2 hours with this question!!! This video save me life!!!!!!!!!!!!!!!!!!!!!!!!! Thank you so much!!!

[@ken8844]

Oh my god. This is exactly what I was looking for. For me, I don't understand O.C but they way you explain is just perfect. I hope there are more easier way to learn in Macro/Micro Economist

[@MrJmr887]

Thank you buddy, my homework question was soo confusing to me until you explained it and showed it to me this way. A rather simple process.

[@angelamontoya6354]

OC understanding has been elusive to me. My brain agrees with your method of explanation. I was worried about remembering the 3 points but, this AM I woke up with the sentence on my brain. Thank-you!!!

[@shortWM]

After watching many videos, I wasted my time. But I learn the best part for this topic in your video. Thank you Brother❤️

[@narutofan4545]

thanks pham
missing a whole week of macro really did a number on me

[@valentinacaravelis8484]

This was very easy and helpful. It makes so much more sense now thanks

[@jannices.a6228]

I FINALLY GET IT! Thank you this is extremely helpful!:)

[@sourovajmain2048]

That Per hour example really saved me. Thank you

[@mrchowchow110]

Thank you so much! Studying for AP Macro was smooth sailing until I just could NOT wrap my head around this!

[@lenaayon737]

you are the real MVP. Thank you

[@fredielyncunanan3942]

You made my life so much easier. You are heaven sent! cant thank you enough.

[@gabrielsanchez1285]

You look like you are heaven sent too ;)

[@nutritionscience88]

Thank you sooooooo much . I have a test tomorrow and I was totally lost but you explained it very well. Thankssssssss

[@all_might6688]

Way better than my textbook's explanation! Thank you so much for helping me get an A+ on my ECO test :')

[@sepandjazzi]

8 years late, but this is awesome!!!

[@Munistic]

THANK YOU SO MUCH! my professor does not teach at all and only shows us images on lectures. This helped a lot

[@elicezanker]

Thank you so much, you've made it so easy to understand. Super grateful!

[@dancinglikecrazy5510]

I dont understand why i wasnt understanding how to calculate this but now i do thanks

[@michellearellano5091]

Great video!! Helped teach me what my professors couldn’t

[@emmacho2580]

Thank you! you explained much better than my professor.

[@billiereyes1]

THANKS SO MUCH BECAUSE I WAS SO CONFUSED BUT NOW YOU HAVE GIVEN ME CLARITY :-)

[@a45williams]

Cody, the man is trying to help, and all you see or hear his voice tone? The problem is not him, but you.

[@butterpecanrican_]

OMFG I COULD CRY RIGHT NOW. THANK YOU. 😭😭😭😭😭

[@MotherMonstersBaby]

Our teacher used the exact same example but I needed a reminder of whether the differences were used in the division or the actual number of chairs and TVs so thank you 😅

[@AVANID-ld3zs]

This was so incredibly helpful and so easy to understand

[@felixojunekwu7753]

I am a bit confused with the formula used here. How can this be used for scenarios like salaries of A and B, expenses and other benefits? a formula: OC=FO-CO. FO: Return of the FORGONE OPTION. CO: Return of the Chosen Option.

[@reybambampow3514]

Bro I would buy you lunch if you lived near me. Best video on here showing how to calculate OC

[@FreeEconHelp]

Thanks!

[@MrLittledirector]

What a Top Class Legend you are! Only you could explain it properly

[@FreeEconHelp]

Thanks!

[@alecmcmillan2128]

on the per-hour example in Jill's case, does it mean that she can either create 3 TVs OR 5 chairs per hour, or is it that in the space of an hour she can create 3 TVs AND 5 chairs?

[@IJayhonI]

You sir are a life savior!

[@romero2g4u]

OMG! This is so SIMPLE! Thank you!

[@dzezud7674]

I can't believe it can be this good

[@kamakazebunny]

Great video and example. Got confused reading my notes, so I had to look this up. lol

[@bryceholevas6749]

this just made my life so much easier

[@kekenhawak]

What if you a different numbers when you substract the numbers of chairs? What will you do?

[@veronicaalarcon2045]

I have a question: I have a table: truck 0 1 2 3 4 5
and tank 5 4.5 3.8 3.0 2.0 0
Opp Cost - - - - - -
a) Compute the opportunity cost in forgone tanks for each additional truck produced:
I'm taking the differences as you showed. 1 truck is .5 tanks which once divided isnt changing... what am i doing wrong?

[@JSandwich13]

My lecturer explained this but it's confusing so thanks for this

[@jaejuhira]

based on your explanation, it shows that no need to sketch the PPF graph to obtain the opportunity cost value if the number that we wanna use is already stated on the table.
thus, I would like to know if this way is applicable or not in order to find the opportunity cost for the number that is not stated on the table ?

[@joaquinzanabria9859]

thank you for this!! truly helped me before my Macro Quiz! Bless!!!!!

[@mohmudgaryare6024]

Thank you so muchhhhhh, i have a quiz today and i was really confused.

[@FreeEconHelp]

Good luck!

[@DjDestoza]

What if i have to calculate combination C?? What do i subtract? Take the Chair column! I can see 5,5 but at the last row, what do i subtract with? You instant reply may save my day!

[@Ikelley124]

Wow you make it so easy to understand, thank you!

[@tatyanagrossett8002]

How do you know when to calculate the difference and when not to??? In step 1

[@pupumipubx9584]

Thank you so much. I understand O.C a lot better now.

[@Naturalnewbe1]

If you just add one more to both sides like 36 guns then how u calculate butter or if you added 1 butter like 4 then what's the guns

[@angeldavis8020]

Hey cuz!! How ya doing

[@staceyjezek1828]

Made it SO easy to understand! Thank you!

[@fatimamitu4809]

thanks for this video! Helped me a lot

[@chrisem060591]

This was very helpful! I get it!

[@ukareben3297]

Thank you so much. It help me to understand.

[@xbuzzedx]

Sounds like Chris Griffin

[@FreeEconHelp]

thanks? :)

[@ToriAndDada]

Free Econ Help you really do sound like chris griffin , but thanks that was extremely helpfull

[@carnoises86]

Michael a little

[@yourneighbour5738]

Funny you pay to go for formal education that doesn't actually teach you how but this guy teaches you how for free

[@harrygaul4475]

The video is great but it's missing the graphical pictures of the slope.

[@arnavkachroo279]

so very helpful. 1 question. would this work in all cases? i mean assuming im doing it right would it work

[@AGloriousLife]

OMG! Thank you for explaining this so clearly!

[@mainel6486]

I'm sorry but why is it necessary to use subtraction for the first problem? How is it different from the second problem? Could someone clarify this please?

[@Filming-and-Stuff]

Extremely helpful - thank you

[@DuhItsMeLeo]

Thanks! Couldn't have done my homework with out it lol.
And also SUBSCRIBED lol because I know I'll need more help through my econ course.

[@mesaketadulala9720]

thanks alot mahn, truly helped on an economics tutorial (Y)

[@smilgadp]

Thank you very much for sharing this video!
All the Best

[@kvsrajeev]

Thanks much for sharing your knowledge on youtube.

[@Kenzinru]

Man you are the awesome. thanks for the help.

[@thecrunchyrunner5321]

This is so helpful thank you so much!

[@yusrafatima126]

Bruh Im a junior in high school and I wasn't getting these calculations thanks alot for helping!

[@Scripturalnsights]

Thank you so much! Can you provide a brief video on how to plot a graph using two different units that are limited by say 50 labour (collective) hours a day? The units may be entertainment production vs. food production.

[@ruthgomez9288]

love your voice GOD bless you

[@thebiermanbrothers6241]

Soooo helpful thank you so much my man! God bless!

[@makatlehomoorosi2461]

This is what I learned in class but more easier

[@sabeehashahid5374]

omg it was soo easy to understand but the teacher won't agree if I didn't show the steps or working that how I got that answer

[@JDG.RealEstate]

I'm applying this process and the online test still says it is wrong

[@evanthompson3727]

Final exam is in an hour...Good to go!

[@MA-rc2eo]

Thank you man you saved me.

[@lauryn7490]

This helped so much thank you

[@Astuslinux]

Wonderful nice professor .well explained ... thanks alot

[@Bradlyhowland]

Very helpful video - thanks for sharing.

[@shirleywalker9722]

Thanks so much, I have scored low on my test more than once because my teacher couldn't explain this simple equation to me.

[@sacsac18]

Wow. Great method!

[@shroomamiii]

this is so helpful thank u!!!

[@bongiwethusi7501]

NICE AND SIMPLE EXPLANATION...tanx

[@boondockscentral1]

explained very well thank you

[@chascagirl]

he kinda sounds like the asian guy from perfect score...thumbs up dude!!;)

[@zeroxtc2181]

Omg thank you, I've got a Economics test tomorrow and I couldnt find the way to calculate Opportunity Cost in this crappy textbook

[@harrywu630]

Thank you so much, that's very helpful

[@abibayussif1274]

So if I understand u, it means de numbers can be divided by 5 or 10 ryt

[@abibayussif1274]

Plz reply

[@Eadrene]

Thank you so much. This is absolutely amazing.

[@Mount_Miskan]

how do you write vertically?

[@edwinespinoza8236]

Very helpful for my test review!

[@clarisfeliz3998]

Thanks so much. This helped me a lot;);)

[@FreeEconHelp]

Glad to help!

[@Skim3431]

you're a life saver. Thanks

[@qnizami2339]

This is brilliant

[@hasibsaayed603]

Very Helpful! Thank you!