Question

What role does opportunity cost play in the decision to enter the tournament, pay gang member dues, or become a leader such as TJ?

Answer 1

Opportunity cost is the cost of next best alternative foregone.

It represents the benefit that one losses when he/she chooses an alternative.

The role of opportunity cost is to make an educated decision when multiple alternatives are available. Like weather to enter the tournament, pay the memeber its dues or become a leader.

Since opportunity cost can be very easily overlooked if one is not careful. It is very important to understand missing potential opportunities.

All the best.

In case of any query feel free to leave your doubt in comment section.