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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
Brands must pay for the opportunity cost of locking in a creator’s endorsement.
3.
—Kristen Bousquet, Forbes, 30 Nov. 2024
The nadir of female labor force participation represents the dramatic opportunity cost created by technological development rendering a woman’s earning potential outside the home much higher than the costs saved by two to three hours of subsistence housework.
—Tiana Lowe Doescher, Washington Examiner - Political News and Conservative Analysis About Congress, the President, and the Federal Government, 29 Nov. 2024
Cap-wise, the trade also had the opportunity cost of eliminating the Kings’ nontaxpayer midlevel exception; if not technically then at least practically.
—John Hollinger, The Athletic, 7 July 2024
Here’s the thing: the opportunity cost of not asking those questions can be huge.
—Dr. Diane Hamilton, Forbes, 1 Nov. 2024
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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 15 Dec. 2024.
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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