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.
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 But apart from the opportunity cost of not nominating a great performance, if Stan gets nominated for playing Donald Trump in a movie that casts Donald Trump in a bad light, guess who’s going to start interjecting his big, gross, sweaty opinions into the Oscar race? Joe Reid, Vulture, 20 Jan. 2025 Nunn also noted there's an opportunity cost associated with pulling active duty military and Guard members away from their current roles to instead implement a deportation plan. Dave Boucher, Detroit Free Press, 25 Nov. 2024 In addition to the impact of taxes and inflation on CDs, there are opportunity costs involved, said Jayson Bronchetti, chief investment officer at Lincoln Financial. Michelle Fox, CNBC, 11 Oct. 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 1 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

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