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
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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 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 22 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

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