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
When considering taking on debt versus paying cash, look at all the factors, like the cost of the loan, possible tax benefits, and opportunity cost for cash purchases.
—
Kristin McKenna, Forbes.com, 23 July 2025
What’s less neutral, however, are the opportunity costs.
—James Broughel, Forbes.com, 15 July 2025
Simply put, waiting around for INTC to catch up would have come at a significant opportunity cost —potentially thousands of basis points lost to more dynamic names in the space.
—Frank Cappelleri, CNBC, 25 June 2025
This analytical thinking approach helps entrepreneurs set prices that reflect value created rather than just costs incurred:
Calculate opportunity costs.
—Allbusiness, Forbes.com, 13 June 2025
See All Example Sentences for opportunity cost
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.
Kristin McKenna, Forbes.com, 23 July 2025
What’s less neutral, however, are the opportunity costs.
—James Broughel, Forbes.com, 15 July 2025
Simply put, waiting around for INTC to catch up would have come at a significant opportunity cost —potentially thousands of basis points lost to more dynamic names in the space.
—Frank Cappelleri, CNBC, 25 June 2025
This analytical thinking approach helps entrepreneurs set prices that reflect value created rather than just costs incurred:
Calculate opportunity costs.
—Allbusiness, Forbes.com, 13 June 2025
See All Example Sentences for opportunity cost
Cite this Entry
“Opportunity cost.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/opportunity%20cost. Accessed 7 Aug. 2025.
Copy CitationLove words? Need even more definitions?
Merriam-Webster unabridged
Share