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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
As well as the risks of concentration, this also creates an opportunity cost.
—Hannes Hofmann, Forbes, 1 Nov. 2024
Grass' Hidden Cost The opportunity cost of grass versus artificial turf, however, is quite different.
—Eben Novy-Williams, Sportico.com, 3 Sep. 2019
In this scenario, that $200 difference is the opportunity cost.
—Sho Dewan, Forbes, 27 Oct. 2024
Higher interest rates also raised the opportunity cost of buying art, since wealthy collectors could earn an easy 5% or more from cash and Treasurys.
—Robert Frank, CNBC, 24 Oct. 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 25 Nov. 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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