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.
The opportunity cost for writing patents instead of grants was more than 33 times the income realized. Joshua M. Pearce, The Conversation, 23 Apr. 2025 However, failing to invest in creative capital comes at a cost—an opportunity cost that many industries fail to recognize. Shane Savage, Forbes.com, 10 Apr. 2025 The opportunity costs are especially striking for Asian elephant conservation: while over a trillion dollars is spent combatting climate change annually, the funds available to address the myriad of problems facing wild Asian elephants are far smaller. Nitin Sekar, ArsTechnica, 5 Apr. 2025 Finally, the current Highway Performance Monitoring System represents a potentially significant opportunity cost. Mark Pittman, Forbes.com, 3 Apr. 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 9 May. 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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