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

Opportunity cost refers to what is lost by choosing one option over another.

From Textbooks • Jun. 15, 2022

Opportunity cost the cost incurred by not pursuing other options.

From Textbooks • Jun. 15, 2022

Opportunity cost, for example, is also a crucial idea in Sylvia Plath’s The Bell Jar.

From Time • Oct. 5, 2015