The loss of potential gain from other alternatives when one alternative is chosen: idle cash balances represent an opportunity cost in terms of lost interest
More example sentences
- On the other hand, the lower yield curve also implies a lower opportunity cost of waiting to invest, due to the lower short-term rate.
- For now, we will assume that the opportunity cost of their time is $5, which now gives them a residual of $5.
- Gold held as reserves by a Central Bank has an opportunity cost.
Definition of opportunity cost in:
- The British & World English dictionary