opportunity cost

[op-er-too-ni-tee kawst]

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.

opportunity cost

noun

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

Word History and Origins

Origin of opportunity cost¹

First recorded in 1910–15

Example Sentences

The opportunity cost includes potential impacts on solving cases and maintaining public safety in high-crime areas.

From Los Angeles Times

Whenever the military is used domestically, there is an opportunity cost.

From Salon

Such media coverage comes at a great opportunity cost.

From Salon

The post-pandemic increase in wages in no way can compensate for the last opportunity cost of a generation of flat or real wage loss that was replaced by predatory consumer credit and student loans.

From Salon

He pinpoints one issue: the new approach had to be "opportunity cost neutral" - in other words, including a wider range of diseases without extra NHS spending.

From BBC