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.
The opportunity cost is enormous because packaging and presenting data to consumers in the right way can actually build trust and loyalty. Graham Gardner, Forbes.com, 14 May 2025 With opportunity cost in mind, each dollar spent is thought out more thoroughly. Sam Dogen, CNBC, 6 May 2025 The public opportunity cost will be several hundred million dollars higher when considering forgone property taxes and land sales for the stadium footprint. Robert Sroka, Baltimore Sun, 6 May 2025 Lower interest rates also lessen the opportunity cost of holding a non-yielding asset like gold. Trefis Team, Forbes, 19 Mar. 2025 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

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Cite this Entry

“Opportunity cost.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/opportunity%20cost. Accessed 28 May. 2025.

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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