How do you calculate the value of an opportunity cost when the alternatives have no or negative value? For instance, the opportunity cost of going to a doctor rather than the alternative of dying. According to the definition one would need to add the value of dying to the cost of going to the doctor in order to come up with the opportunity cost.

Question

How do you calculate the value of an opportunity cost when the alternatives have no or negative value?  For instance, the opportunity cost of going to a doctor rather than the alternative of dying.  According to the definition one would need to add the value of dying to the cost of going to the doctor in order to come up with the opportunity cost.

anonymous · Answer

Opportunity cost is the value of the next best option. To see it's effect on your decision making process - you subtract this opportunity cost from the value of whatever decision you chose as the "base".

Let's say going to the doctor's has a net value of 0, while death has a net value of -100.

If you chose death as your base decision - you will end up with a net total value, OC adjusted of -100-0=-100

If you chose going to the doctor's as your base decision - you will end up with a net total value, OC adjusted of 0-(-100)=100

And that is how you deal with negative opportunity costs.