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’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 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 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

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