Economics becomes a science · 1770s–1920s
1914
Opportunity cost gets its name
Friedrich von Wieser defines cost as the best alternative given up.
Austrian economist Friedrich von Wieser argued that the true cost of using something is the value of the best other use it had, an idea soon called opportunity cost.
💡 Why it made sense then
It explained costs even where no money changes hands, like the time you spend.
Ideas it gave us
- ⚖️ Opportunity cost
Opportunity cost is the value of the best alternative you give up when you make a choice. The real cost of anything is what you could have had instead.
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