Answer to Question #167858 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 is no free lunch is an expression 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 a situation where there is no cost incurred by the individual receiving the goods or services being provided, but economists point out that even if something were truly free there is an opportunity cost in what is not taken.