Opportunity cost
On This Lesson 4 topics
This lesson is planned. The outline below lists the topics it will cover. The full lesson has not been published yet.
In this lesson
include what the team would not do if it chose an option.
Planned topics
- Engineers building a payments engine cannot build seller tools in the same period.
- Value the alternative use: the benefit forgone from the next best project.
- Staffing decisions have a ramp-up and hiring delay; include them.
- Opportunity cost often decides between two options with similar TCO.
Draft outline details
Demonstration
a two-column comparison: option A (build) uses 12 engineers for 18 months; the next best use of those engineers is the marketplace seller tools with estimated value.
Check your understanding
What does opportunity cost measure?
Show answer
The value of the best alternative use of the same resources.
Practice
Apply this lesson with the module's lab, exercises and quiz.
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