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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The current environment offers a lower opportunity cost for holding gold. Jason Kirsch, Forbes.com, 8 July 2026 The third drawback to eliminating the tax cap is the opportunity cost. Jessica Riedl, The Atlantic, 6 July 2026 For this calculation, the institutional research department compared UC graduates’ earnings to out-of-pocket costs for their degrees and the opportunity costs of forgone wages of high school graduates of the same age. Tarini Mehta, Sacbee.com, 2 July 2026 And there’s also the opportunity cost of giving up so much future trade capital in a market where first-round picks are overvalued. Dom Luszczyszyn, New York Times, 26 June 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 14 Jul. 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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