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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Federal Reserve policy will likely determine the trajectory The potential for more Federal Reserve rate cuts in 2026 creates a broadly favorable backdrop for precious metals, as lower rates reduce the opportunity cost of holding non-yielding assets like silver and gold. Angelica Leicht, CBS News, 22 Jan. 2026 The tragedy here is the opportunity cost. Dieter Kurtenbach, Mercury News, 21 Jan. 2026 Those missed opportunity costs also don’t add up neatly in Excel. Steve Booren, Denver Post, 18 Jan. 2026 This sum could be absorbed as an opportunity cost, the CBO added, paid out of existing budgets. Eleanor Pringle, Fortune, 15 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 29 Jan. 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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