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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
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
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Word History
First Known Use
1894, in the meaning defined above
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
More from Merriam-Webster on opportunity cost
Britannica.com: Encyclopedia article about opportunity cost
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