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 Shareholder pressure and the sheer opportunity cost of maintaining the capacity of plants, workers, and supply chains to ramp up production of millions of rounds of shells were immense. —

Thomas Meaney, Harper's Magazine, 26 Apr. 2024 The opportunity cost these students will incur because the Blueprint does not focus on their academic achievement will be significant. —

Chris Roemer, Baltimore Sun, 13 Apr. 2024 For most valuable resources the opportunity costs are high. —

Abdo Riani, Forbes, 29 Feb. 2024 Paying cash is offset by the opportunity cost of doing something else with that money, such as investing in the stock market, which often sees long-term annual returns north of 8 percent. —

Tik Root, WIRED, 30 Mar. 2024 See all Example Sentences for opportunity cost

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'opportunity cost.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

First Known Use

1894, in the meaning defined above

Time Traveler

The first known use of opportunity cost was in 1894

See more words from the same year

Cite this Entry

Style

“Opportunity cost.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/opportunity%20cost. Accessed 6 Jun. 2024.

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