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.
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 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 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

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