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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Your generous heart likely loves to say yes, but everything has an opportunity cost. Tarot.com, Chicago Tribune, 5 Apr. 2026 This means that skills are valued at the opportunity cost of compute required to replicate them. Nick Lichtenberg, Fortune, 4 Apr. 2026 Despite being a hedge against uncertainty and inflation, high rates raise the opportunity cost of holding the metal. Ashitha Shivaprasad, USA Today, 31 Mar. 2026 Higher-for-longer interest rates raise the opportunity cost of holding gold, which doesn’t pay income. John Towfighi, CNN Money, 26 Mar. 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 6 Apr. 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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