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

See Examples For:

opportunity cost

The opportunity cost of doing that is high.

From MarketWatch ● Oct. 2, 2026

“There is an opportunity cost associated with paying that tax today rather than allowing those assets to remain invested on a tax-deferred basis,” he says.

From MarketWatch ● Sep. 2, 2026

“If your wage doesn’t keep up with the rest of the United States,” he said, “then the opportunity cost of staying in Hawaii becomes higher and higher.”

From The Wall Street Journal ● Aug. 20, 2026

—Gold prices slipped, pressured by higher oil prices and higher Treasury yields, which increase the opportunity cost of holding nonyielding bullion.

From The Wall Street Journal ● Aug. 18, 2026

With yield premiums narrow in the corporate market, the opportunity cost of being in Treasuries is reduced.

From Barron's ● Jun. 26, 2026