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 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

The report closes with a comparison, noting the opportunity cost of spending billions of dollars on deportations and pointing out the same sum could build over 40,000 new schools, 2.9 million homes and cover the cost of college tuition for 5 million people.

From Salon

Here’s where he started his next comment—again, at the opportunity cost of not talking about immigration, which should probably be his strongest issue:

From Slate

As a loose ball flew up out of a contest between Nwankwo Kanu and Simon Davies, he didn't think about high-value shots or low defensive blocks, opportunity cost or half spaces.

From BBC