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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The opportunity cost, then, is significant; administrators must devote a lot of time to make a few million extra bucks a year. Matt Baker, New York Times, 12 May 2026 Providing those services carries opportunity costs, too. Henry Grabar, The Atlantic, 12 May 2026 Of course, travelers need to weigh the risks and opportunity costs of doing so. Greg Iacurci, CNBC, 8 Apr. 2026 Your generous heart likely loves to say yes, but everything has an opportunity cost. Tarot.com, Chicago Tribune, 5 Apr. 2026 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 16 May. 2026.

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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