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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
For most valuable resources the opportunity costs are high.
—Abdo Riani, Forbes, 29 Feb. 2024
Paying cash is offset by the opportunity cost of doing something else with that money, such as investing in the stock market, which often sees long-term annual returns north of 8 percent.
—Tik Root, WIRED, 30 Mar. 2024
Investment and Commitment: Becoming an MBA graduate involves significant financial investment and opportunity costs, with programs varying in cost from $20,000 to over $100,000.
—Bryce Welker, Miami Herald, 5 Mar. 2024
Recognizing opportunity costs helps entrepreneurs evaluate trade-offs, prioritize investments, and allocate resources efficiently.
—Abdo Riani, Forbes, 29 Feb. 2024
That opportunity cost can be voter confusion — or, in my case, angst and avoidance.
—Erika D. Smith, Los Angeles Times, 5 Mar. 2024
There is an opportunity cost for Israeli politics, too.
—Bernard Avishai, The New Yorker, 2 Mar. 2024
For instance, if an entrepreneur chooses to invest resources in one project, the opportunity cost is the potential benefit from investing those resources elsewhere.
—Abdo Riani, Forbes, 29 Feb. 2024
This one name doesn’t tell the full story, though, and investors who are sitting on the sidelines may be paying a steep opportunity cost.
Or maybe not.
—Frank Holmes, Forbes, 20 Feb. 2024
These examples are programmatically compiled from various online sources to illustrate current usage of the word 'opportunity cost.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.
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 28 May. 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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