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
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The Fed made a decisive 50-basis-point (bp) rate cut last week, lowering the opportunity cost of holding a non-yielding asset like gold.
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Frank Holmes, Forbes, 26 Sep. 2024
First are the opportunity costs of a pivot to Asia.
—Richard Fontaine, Foreign Affairs, 2 Nov. 2021
Add in the exorbitant expenditures, the unreliability of weather and the immense opportunity costs (money that could have been used elsewhere, such as for clean water), and the case for the big energy alternatives—solar panels and windmills—disappears like water in a scorching desert.
—Steve Forbes, Forbes, 24 Sep. 2024
But inevitably as yields decline and the opportunity cost of sitting on cash too long grows, private markets rebalance.
—Sanskriti Thakur, Forbes, 18 Sep. 2024
See all Example Sentences for opportunity cost 
Frank Holmes, Forbes, 26 Sep. 2024
First are the opportunity costs of a pivot to Asia.
—Richard Fontaine, Foreign Affairs, 2 Nov. 2021
Add in the exorbitant expenditures, the unreliability of weather and the immense opportunity costs (money that could have been used elsewhere, such as for clean water), and the case for the big energy alternatives—solar panels and windmills—disappears like water in a scorching desert.
—Steve Forbes, Forbes, 24 Sep. 2024
But inevitably as yields decline and the opportunity cost of sitting on cash too long grows, private markets rebalance.
—Sanskriti Thakur, Forbes, 18 Sep. 2024
See all Example Sentences for opportunity cost
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.
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“Opportunity cost.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/opportunity%20cost. Accessed 25 Oct. 2024.
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