opportunity cost

American  

[op-er-too-ni-tee kawst] / ˌɒp ərˈtu nɪ ti ˌkɔst /

noun

Economics.

1. the money or other benefits lost when pursuing a particular course of action instead of a mutually-exclusive alternative.

   The company cannot afford the opportunity cost attached to policy decisions made by the current CEO.

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opportunity cost British  

noun

1. economics the benefit that could have been gained from an alternative use of the same resource

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Etymology

Origin of opportunity cost

First recorded in 1910–15

Compare meaning

How does opportunity-cost compare to similar and commonly confused words? Explore the most common comparisons:

• trade-off vs. opportunity cost

Example Sentences

It’s a clever workaround and it would be technically feasible, but you are correct in that the opportunity cost and potential capital-gains taxes from liquidating other assets probably outweigh those tax savings.

From MarketWatch

Gold often thrives when rates are lower and the opportunity cost of holding the metal is low.

From The Wall Street Journal

If that happens, the monetary backdrop would become “increasingly supportive for precious metals, including silver, as the opportunity cost of holding non-yielding assets declines.”

From MarketWatch

“It may help you avoid some fraction of the selloffs, but you incur a huge opportunity cost in losing out on the run-ups.”

From The Wall Street Journal

The nomination also bolstered the U.S. dollar, which raised the opportunity cost of holding dollar-denominated assets.

From Barron's