Answer to Question #167432 in Microeconomics for Asare Owusu Isaac

Question

There is no free lunch is a popular concept in economics. Provide a comprehensive discussion of this statement by relating it to economic theory.

 

Answer 1

There ain't no such thing as a free lunch that describes the cost of decision-making and consumption. The expression conveys the idea that things appearing free always have some cost paid by somebody, or that nothing in life is truly free.

A free lunch refers to something obtained without any payment, obligation or effort, but economists argue that even if something is truly free there is an opportunity cost in what is not taken.