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.
The opportunity costs are especially striking for Asian elephant conservation: while over a trillion dollars is spent combatting climate change annually, the funds available to address the myriad of problems facing wild Asian elephants are far smaller. Nitin Sekar, ArsTechnica, 5 Apr. 2025 Finally, the current Highway Performance Monitoring System represents a potentially significant opportunity cost. Mark Pittman, Forbes.com, 3 Apr. 2025 There’s a significant opportunity cost at work too. The Editorial Board, Chicago Tribune, 28 Mar. 2025 The opportunity cost of pursuing a doctorate is, thus, up to $100,000 per year. Moshe Y. Vardi, The Conversation, 20 Mar. 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

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Cite this Entry

“Opportunity cost.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/opportunity%20cost. Accessed 15 Apr. 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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