Answer to Question #167737 in Microeconomics for Antwi Stephen

Question

There is no free lunch is a popular concept or statement in economics. Provide a comprehensive discussion of the system by relating it to economics theories.

Answer 1

"There is no free lunch," refers to the idea that it is impossible for a person to get something for nothing. Every choice you make has a next-best alternative that you could have chosen but didn't. That foregone opportunity is an opportunity cost. That is, the price you paid for doing whatever you did was an opportunity you can no longer enjoy. It is a phrase that describes the cost of decision-making and consumption,which suggests that things that appear to be free will always have some hidden or implicit cost to someone, even if it is not the individual receiving the benefit.