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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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
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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
Cite this Entry
“Opportunity cost.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/opportunity%20cost. Accessed 8 Jul. 2025.
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