Meaning & use

opportunity cost

noun·Academic

The value of the best alternative given up when a person chooses one option over another.

See it in a sentence

The opportunity cost of attending college full-time includes the salary she could have earned by working instead.

Choosing to watch television all evening has an opportunity cost: the exercise or reading you gave up.

A note on using this word

Opportunity cost is a core concept in economics, reminding decision-makers that every choice involves giving up other possibilities.

Words with a similar meaning

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