a) When making this comment Friedman implied that any decision is bound to have its costs along with the benefits. Even if the costs cannot be measured in monetary terms, they always exist as a cost of the opportunity forgone in favor of the chosen option. Putting it in simple terms, selecting a menu for lunch would cost you the pleasure of trying other dishes, even if the meal itself comes “for free”.
b) When planning a career, one always faces a choice between getting education and starting to work earlier. Having applied to college, I realized that this decision carried the opportunity cost of the lost income during the years of studying. However, having evaluated all the option, I decided that higher education would be more profitable in the long-run. That is why I chose to get a university degree, despite the opportunity cost of the lost income during these years. Opportunity cost exists in the decisions we make in personal lives just as much as in the professional field. Thus, at some point of life I faced a choice, whether to live in my hometown with parents or to move out and start an independent life. On the one hand in this case was the cost of the rent to pay in a new place, while on the other was the opportunity to gain new experience and career prospects. I have eventually decided to live separately, however this choice was connected with the opportunity cost of the forgone free accommodation and a loss of the daily family support.
c) I always consider opportunity cost in my decision-making. When evaluating different options, it is important to make sure that the opportunity cost a particular decision is not higher than its benefit. Therefore, I always select the option with the lowest opportunity cost, thus the one which is more rational and efficient.
a) Although profit is not an aim in itself, it is a strong motivator for an individual and a significant driving force of economy in general. In my opinion, a profit is a reward for the efforts and for the correct decisions. Therefore, unless profit-making is based on impoverishing the others or harming the planet, it is a very positive aspiration and not a sign of greed.
b) Banning profits in the country would have a devastating effect on the economy. No entrepreneur would be motivated to work without expecting any reward. As a consequence, all the businesses would terminate their operation. Today, profits are the major driver of the economy and profit-making neither can be eliminated nor should it be denounced.