Definition
The value of the best alternative you give up when making a choice, beloved by economists and annoying people at dinner parties who calculate the lost investment returns of buying appetizers.
Example Usage
The opportunity cost of building this feature in-house is not developing three other customer-requested features.
Origin
Economic theory formalized by Austrian economist Friedrich von Wieser in the late 19th century.
Fun Fact
Every meeting has an opportunity cost calculable by multiplying attendees by their hourly rate by duration, which is why that all-hands just cost $47,000.
Source: Economic theory and business decision-making terminology
Related Terms
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See “opportunity cost” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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