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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
First, categorize tech debt into principal, interest, liabilities and opportunity cost. Daniel Kendzior, Fortune, 31 Oct. 2025 The station’s dizzying sticker price has meant not just balance sheet costs but opportunity costs. Jeffrey Kluger, Time, 31 Oct. 2025 So, the opportunity cost involved for something like Skyscraper Live is almost zero. Frederick Dreier, Outside, 29 Oct. 2025 This includes the compromise, publication, theft and/or unauthorized use of their personal data, out-of-pocket costs associated with prevention, detection, recovery and remediation from identity theft or fraud, lost opportunity costs and lost wages and time. Lauren Giella, MSNBC Newsweek, 24 Oct. 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 Nov. 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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