Free good= no scarcity ?

2010-12-30 6:41 pm
1. Free good= no scarcity ?
2.Are there any opportunity cost of using free goods? please give examples.
THANKS

回答 (2)

2010-12-31 3:45 am
✔ 最佳答案
Q1. In this world of competition, scarcity exists because people has unlimited wants. However goods don't mean free of charge but they are goods provided by nature, such as water. With the existence of free goods, scacity exists because free goods can not satisify all people's unlimited wants and opportunity cost exists.

so, Free good =XX No scarcity.

Q2.

For e.g: water in the desert VS water in a tropical area. The value of water is higher in desert than in tropical area.

We do not normally use opportunity cost to talk about free goods . We usually say that OC exists with economic goods.. etc...such as, if u have 3 hours left today. U use all 3 hrs for movie instead of studying, then, the OC for movie is the time for studying..la.

參考: me
2010-12-30 7:33 pm
The free good is a good that is not scarce. A free good is available in as great a quantity as desired with zero opportunity cost to society.A good that is made available at zero price is not necessarily a free good. For example, a shop might give away its stock in its promotion, but producing these goods would still have required the use of scarce resources, so this would not be a free good in an economic sense.There are two main types of free goods:Resources that are jointly produced. Here the free good is produced as a by-product of something more valuable. Waste products from factories and homes, such as discarded packaging, are often free goods. Ideas and works that are reproducible at zero cost, or almost zero cost. For example, if someone invents a new device, many people could copy this invention, with no danger of this "resource" running out. Other examples include computer programs and web pages.


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