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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
There’s also the opportunity cost of filling up on super-processed stuff.
—Erica Sloan, SELF, 18 Dec. 2024
The costs are great, the opportunity costs are even greater, and yet the problem remains.
—Bruce Tulgan, Forbes, 4 Dec. 2024
However, another consideration is that of opportunity cost.
—Grant Brisbee, The Athletic, 22 Nov. 2024
Brands must pay for the opportunity cost of locking in a creator’s endorsement.
3.
—Kristen Bousquet, Forbes, 30 Nov. 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 23 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
More from Merriam-Webster on opportunity cost
Britannica.com: Encyclopedia article about opportunity cost
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