opportunity cost

The value of the next best alternative that you forgo when making a choice — what you give up by choosing one option over another. The true cost of anything is what you sacrifice to get it.

• (compound economic term)

• opportunity cost of
• consider the opportunity cost
• high opportunity cost
• opportunity cost analysis
• opportunity cost of time

1. 1.The opportunity cost of attending a four-year university isn't just tuition — it's also the four years of salary you could have earned by working instead. (foregone alternative)
2. 2.If you spend Saturday studying, the opportunity cost is whatever else you would have done — socialising, exercising, sleeping. The cost is measured in sacrifice, not money. (non-monetary cost)

• alternative cost (the cost of the next best option)
• trade-off— what you give up to get something

"opportunity" from Latin "opportunitas" (fitness, suitability) — "ob" (before) + "portus" (harbour) — the favourable wind before the harbour + "cost" from Latin "constare" (to stand firm, to cost) — the price of the path not taken