What is a monetary opportunity cost?

When economists refer to the “opportunity cost” of a resource, they mean the value of the next-highest-valued alternative use of that resource. If, for example, you spend time and money going to a movie, you cannot spend that time at home reading a book, and you can’t spend the money on something else.

What is an example of non-monetary opportunity cost?

Opportunity cost is useful when evaluating the cost and benefit of choices. It often is expressed in non-monetary terms. For example, if one has time for only one elective course, taking a course in microeconomics might have the opportunity cost of a course in management.

Is opportunity cost always monetary?

Opportunity cost does not necessarily involve money. It can also refer to alternative uses of time. For example, do you spend 20 hours learning a new skill, or 20 hours reading a book?

What is a non-monetary cost?

that which it costs a consumer, other than money, to buy a product; the non-monetary price of purchasing a product includes the time devoted to shopping for it and the risk taken that it will deliver the expected benefits.

What is monetary and non-monetary?

Monetary items are assets or liabilities that have a fixed value, such as cash or debt. Nonmonetary items cannot be converted to cash quickly, such as property, equipment, and inventory. Monetary assets are never restated on the financial statements.

What are the non-monetary costs?

Types of non-monetary costs

• Time costs. Most services require direct participation of the consumer and thus consume real-time: time waiting as well as the time when the customer interacts with the service provider (Zeithaml, 1996).
• Search costs.
• Convenience costs.
• Psychological costs.

What is the meaning of non-monetary?

Definition of nonmonetary : not of or relating to money nonmonetary assets “The key for government at every level is to use nonmonetary resources to help private developers build housing people of moderate means can afford.”— Gurney Breckenfeld.

What is the difference between monetary and non-monetary?

Monetary items are assets or liabilities that have a fixed value, such as cash or debt. Nonmonetary items cannot be converted to cash quickly, such as property, equipment, and inventory.

What is non-monetary?

What is the difference between a monetary incentive vs non-monetary incentive give an example of each?

Monetary rewards are the incentives which involve direct money to the employees. Non-Monetary rewards are the incentives which do not involve direct money to the employees. Non-Monetary rewards are also considered as an expense to the organization but there is no direct money given to the employee.

What’s the difference between monetary and non-monetary?

What is the difference between a monetary incentive vs non-monetary incentive?

Monetary rewards are the incentives which involve direct money to the employees. Non-Monetary rewards are the incentives which do not involve direct money to the employees. Non-Monetary rewards are usually given to all the employees of a certain level to offer them convenience and security.