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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
For any brand teams that may be worried about the opportunity cost of delay in e-commerce, our experts are more than happy to review their goals and share our excitement with them.
—WWD, 16 Aug. 2024
Even if Trump were to restrict the reserve to bitcoin seized through law enforcement activity, his administration must also weigh up the opportunity cost associated with holding onto bitcoin.
—Joel Khalili, WIRED, 31 July 2024
The invisible part is the opportunity cost of the investment.
—Stephen J. K. Walters, Baltimore Sun, 21 Mar. 2024
The president recognizes the power of sanctions to squeeze the regime while incurring a low opportunity cost for the United States.
—Michael R. Pompeo, Foreign Affairs, 15 Oct. 2018
See all Example Sentences for opportunity cost
These examples are programmatically compiled from various online sources to illustrate current usage of the word 'opportunity cost.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.
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 19 Sep. 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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