opportunity cost.

The value of the best alternative forgone when a choice uses scarce resources.

Use it for

Words that belong together

• opportunity cost of time
• high opportunity cost
• account for opportunity cost

On the page

The opportunity cost of the extra meeting was an hour of fieldwork.

Using the land for parking carries an opportunity cost if it could support housing.

A free training course still has an opportunity cost for someone who must miss paid work.

Usage notes

Primary category: academic. Established economic compound; not the sum of every rejected option or simply the money spent. Count the next-best alternative relevant to the decision. Singular: opportunity cost; plural: opportunity costs.