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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Lower real interest rates historically reduce the opportunity cost of holding non-yielding assets like silver, while also supporting the industrial activity that drives silver demand in electronics, electric vehicles and green technology. Angelica Leicht, CBS News, 6 Feb. 2026 The key question in the Jackson deal is opportunity cost. Sam Vecenie, New York Times, 4 Feb. 2026 Good economists should not flinch from the fact that saving lives does have an opportunity cost in scarce dollars. James Broughel, Forbes.com, 27 Jan. 2026 The tragedy here is the opportunity cost. Dieter Kurtenbach, Mercury News, 21 Jan. 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 13 Feb. 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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