Answer to Question #281513 in Microeconomics for Faizi

Question

The local shopping centre has free parking, but the centre is always very busy and it usually takes 30 minutes to find a parking space. Today when you found a vacant spot, Harry also wanted it. Is parking really free at this shopping centre? If not, what did it cost you to park today? When you parked your car today, did you impose any costs on Harry? Explain your answers.

Answer 1

Parking is not free because it costed me so much time and energy that I would otherwise use to do productive work and earn cash. When I used the available space to park my car it meant that Harry had to find another parking space and pay to park his car.