“there is no such thing as a free lunch.”
Given the concepts of opportunity cost and scarcity, why is the use of any good or resource never free from society’s point of view? Explain opportunity cost and scarcity and how they are related. Discuss the issue of cost as it relates to the individual who uses the good(resource), the firm providing the good (resource), and society in general. If you won a free bicycle $4000 but don’t like bikes and would never ride it, would there be any opportunity cost to giving that bike to a friends?


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