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.
This is the moment where opportunity costs spike — both in time and in focus. Jessica Billingsley, Rolling Stone, 2 Sep. 2025 There simply weren’t enough resources to support the business's pricing ambitions, and the opportunity cost was too high. Scott Woody, Forbes.com, 1 Sep. 2025 If opportunity costs, lost business generations, psychological trauma, and social capital are added, the cumulative figure could easily exceed $3 trillion. Ed Gaskin, Boston Herald, 31 Aug. 2025 Now that the ability to generate software has become significantly easier, any company in the world that uses technology as a differentiator will be looking at an opportunity cost of not investing more into software that has just gotten higher. Aman Kidwai, MSNBC Newsweek, 27 Aug. 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 10 Sep. 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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