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.
There's an opportunity cost to taking all those extra months, weeks, and days to make a single decision. Nell Wulfhart, CNBC, 2 June 2025 However, there is an opportunity cost, as defensive tackles and ends were among the deepest position groups in the 2025 class, and Washington chose not to select either. Ben Standig, New York Times, 28 Apr. 2025 In this study, investment is calculated to include both tuition and opportunity cost and the return is the projected cumulative extra income over a lifetime. Brandon Kochkodin, Forbes.com, 17 Apr. 2025 Risk isn’t just measured in standard deviation—it’s measured in the opportunity cost of being unprepared. Thierry Brunel, Forbes.com, 15 May 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 13 Jun. 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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