The first being that scarcity and compromise are a factor in every part of our lives and are always true. The second thing that is true most of the time is that there is usually a catch. Focusing more on the first meaning of this phrase can explain a lot about its meaning in relation to opportunity cost. Another example of using opportunity cost and presenting TANSTAAFL would be where a manufacturer has two different ways of making the same products; Product option A is the most profitable, earning $200 per item, but takes 2 days to complete. Product option B only earns $50 in profit, but in the time it takes to make one product A, 30 products B can be made. However, comparing the two products shows that although the initial profits appear to be made by Product A, a complete analysis shows that Product B has a competitive advantage. It is more profitable to produce product b because of the high volume at which the product can be produced, resulting in a higher profit. Although this demonstrates a different theory, we can use it to show opportunity cost. If the company had followed its original thinking and produced a higher volume of product A than it would have, it would be wasting a very high cost. There would be a loss of profit, time and