Applying opportunity costs to decisions not involving money

• Imagine facing the decision of painting a wall in your room green or blue. The paint of both colors cost the same, and both look equally good. 
• After giving it a little thought, you realize that by painting your wall blue, you’d probably not be able to hang your favorite poster because the colors wouldn’t match. Some of the furniture you had previously picked out would also have to be given up because of the color mismatch.
• A green wall, on the other hand, would suit the poster and the furniture you picked out just fine. With your knowledge of what you had to give up if you chose the blue paint, you decide to go for the green.

And that's because it helps put your decisions in context. Costs and benefits are framed in terms of what is most important to you at the time of the decision.

Every time we make a decision involving mutually exclusive alternatives, we will always be subject to this thi...