Words / O / Business

opportunity cost

noun

B2CEFR level
50/100Rarity: uncommon
TechnicalRegister

The value of the next best alternative forgone when a choice is made.

The opportunity cost of holding so much cash is the return we could earn by investing it.

Topic: Economics in Business English

Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.

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