opportunity cost

noun

: the added cost of using resources (as for production or speculative investment) that is the difference between the actual value resulting from such use and that of an alternative (such as another use of the same resources or an investment of equal risk but greater return)

Examples of opportunity cost in a Sentence

Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Even his own brother warned him about the opportunity cost of pursuing a venture on the side. Shikhar Sachdev, thehustle.co, 21 Feb. 2025 In today's competitive landscape, the opportunity cost of inaction is higher than ever. B.d. Dalton, Forbes, 20 Feb. 2025 However, this perspective overlooks the significant opportunity costs of disengagement. Dr. Diane Hamilton, Forbes, 15 Jan. 2025 There is an opportunity cost associated with a team giving up the No. 1 overall pick in an NFL Draft. Pat Leonard, New York Daily News, 23 Jan. 2025 See all Example Sentences for opportunity cost 

Word History

First Known Use

1894, in the meaning defined above

Time Traveler
The first known use of opportunity cost was in 1894

Dictionary Entries Near opportunity cost

Cite this Entry

“Opportunity cost.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/opportunity%20cost. Accessed 26 Feb. 2025.

Legal Definition

opportunity cost

noun
op·​por·​tu·​ni·​ty cost
: the cost of making an investment that is the difference between the return on one investment and the return on an alternative

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