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
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
The Fed made a decisive 50-basis-point (bp) rate cut last week, lowering the opportunity cost of holding a non-yielding asset like gold.
—Frank Holmes, Forbes, 26 Sep. 2024
First are the opportunity costs of a pivot to Asia.
—Richard Fontaine, Foreign Affairs, 2 Nov. 2021
See all Example Sentences for opportunity cost 
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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
The Fed made a decisive 50-basis-point (bp) rate cut last week, lowering the opportunity cost of holding a non-yielding asset like gold.
—Frank Holmes, Forbes, 26 Sep. 2024
First are the opportunity costs of a pivot to Asia.
—Richard Fontaine, Foreign Affairs, 2 Nov. 2021
See all Example Sentences for opportunity cost
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 8 Nov. 2024.
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