Opportunity Cost
/ˌɒpərˈtjuːnɪti kɒst/
Definitions
- (n.) The loss of potential gain from other alternatives when one alternative is chosen, especially relevant in economic and legal decision-making contexts.
The court considered the opportunity cost of accepting the settlement over proceeding to trial.
Forms
- opportunity cost
Related terms
See also
Commentary
Opportunity cost is crucial in legal economics and damages calculation; precision in defining alternatives is important for clarity in contracts and litigation outcomes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.