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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Simply put, waiting around for INTC to catch up would have come at a significant opportunity cost —potentially thousands of basis points lost to more dynamic names in the space. Frank Cappelleri, CNBC, 25 June 2025 This analytical thinking approach helps entrepreneurs set prices that reflect value created rather than just costs incurred: Calculate opportunity costs. Allbusiness, Forbes.com, 13 June 2025 Travelers planning to visit Universal’s other theme parks should consider if the perks of staying at Helios Grand outweigh the opportunity cost of the Universal Express passes and time saved in line. Eve Chen, USA Today, 3 June 2025 That puts an opportunity cost to every dollar spent on player salary, but there is no such limitation to money spent on the rest of the organization. Mike Vorkunov, New York Times, 19 June 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 8 Jul. 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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