
Economics: The Basics 1st Edition by Mike Mandel
Edition 1ISBN: 978-0071316026
Economics: The Basics 1st Edition by Mike Mandel
Edition 1ISBN: 978-0071316026 Exercise 4
Here are three examples of markets in which there is sometimes a zero price. In each case, identify the opportunity cost of consumption, and explain why you don't consume an infinite amount.
a) Unlimited long-distance telephone calls at no extra charge.
b) Free refills for coffee.
c) Unlimited television viewing.
a) Unlimited long-distance telephone calls at no extra charge.
b) Free refills for coffee.
c) Unlimited television viewing.
Explanation
Opportunity cost is an important concept...
Economics: The Basics 1st Edition by Mike Mandel
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