Definition, Meaning & Synonyms
opportunity-cost
noun
ˌɒp.əˈtjuː.nɪ.ti kɒst
Definition
The loss of potential gain from other alternatives when one alternative is chosen.
Examples
- If you spend time studying for an exam, the opportunity cost could be the time you could have spent socializing with friends.
- Investing in a new product line has its own opportunity costs, such as not being able to allocate those resources to marketing existing products.
Meaning
Opportunity cost refers to the value of what you give up when you choose one option over another. It emphasizes the concept that choosing one opportunity will result in the loss of potential benefits from other options.
Synonyms
- Alternative cost
- Trade-off
- Cost of foregoing
