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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These programs typically require 12 to 18 months rather than two years, reducing both direct costs and opportunity costs. Caroline Castrillon, Forbes.com, 18 Sep. 2025 Gold also gains appeal when interest rates fall, as lower yields reduce the opportunity cost of holding the non-yielding asset. Yun Li, CNBC, 17 Sep. 2025 And Putin’s war carries significant opportunity costs for Russia. Celeste A. Wallander, Foreign Affairs, 9 Sep. 2025 This is the moment where opportunity costs spike — both in time and in focus. Jessica Billingsley, Rolling Stone, 2 Sep. 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 21 Sep. 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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