A free good is a good whose existence requires no opportunity cost to produce. How is this different from a good that is offered for a price of zero?

What will be an ideal response?

A good that is offered at a price of zero may not necessarily have been produced at zero opportunity cost. Often stores give away "free" products to get customers to try them but these products were probably not produced at zero opportunity costs. By that definition they are not free goods.

Economics

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How are scarce housing resources allocated when a rent ceiling is in place?

What will be an ideal response?

Economics

Higher productivity is the most direct route to higher living standards

a. True b. False

Economics