Chance, from Latin opportunitas, refers to what convenient of a context and the confluence of a space and an appropriate time period to obtain a benefit or fulfill a target. The opportunities, therefore, are the moments or deadlines that are conducive to taking an action.
For example: A person wants to buy a car. While looking for the vehicle according to your needs, you learn that a neighbor wants to sell his urgently. It is, therefore, an opportunity for the buyer.
Opportunities arise at certain moments in life and must be seized to avoid later regret. Many times there are individuals who regret having wasted an opportunity for different reasons. The important thing, therefore, is to be attentive to those that occur in any field and analyze them to determine what is the option more convenient for one.
Opportunities in the professional field
Today this concept is used especially to refer to the career or job opportunities, referring to the chances that a person has to improve their situation in the job. It may mean the possibility of a promotion, a hiring offer, or the proposal to start a new project or venture.
In all professions it is recommended that experts are always researching and perfecting their knowledge; in this way they become more capable and efficient people, adapting to the new tools on the market. Those people who stay active and constantly learningThey will be better prepared to deal effectively with new job opportunities, thereby enabling them to achieve personal and professional advancement.
The concept in commerce and economics
The opportunities section, on the other hand, is the section of a store where products are sold to a lower price to the usual. Likewise, those web pages where second-hand products are sold or at a more accessible price than in the rest of the market, are also included in this concept.
The cost of investment of the means that are available in a certain commercial alternative, which means leaving aside the rest of the possible investments, is known as cost or opportunity cost. But this concept also extends to personal finances, thus becoming the economic agent (profit or loss) that arises when making any decision.
The term was first conceived in 1914 by Friedrich von Wieser, who raised the Social economy theory, where said concept referred to what is waived when making an economic decision. In this way, every time we have to choose to buy one thing or another, we are assuming that risk.
Opportunity cost examples
For example, if we have a certain budget to choose between a bottle of wine or a beer, whatever our decision In the end we will have an opportunity cost that will be the renunciation of what we do not buy. This means that all rational economic agents (people or companies) make their economic decisions based on the cost and deprivation of the products, knowing in advance that they will have to do without one or the other definitively. The objective of this operation is to make the decision that is most profitable and appropriate to the quality of life of said agent.
Regarding the heritage, it will be modified based on the decisions we make. If, for example, we have land and we are in the dilemma of building a house or renting it to have a monthly income, no matter which option we choose, this will influence that land. If we decide to build, the opportunity cost of said space is calculated by adding the building cost and the amount of lost income.
Finally, it should be clarified that the opportunity cost is often subjective since for the analysis a person’s point of view and their value judgments are taken into account, so that only the investor knows how much he loses and gains on each operation and how much that could affect his well-being and his economy in the long term.