The idea in economics that "there is no free lunch" means that
A) businesses would go bankrupt if they offered free lunches.
B) the thought of a free lunch is often better than the reality of consuming it.
C) there are opportunity costs involved even in free lunches.
D) free lunches used by businesses to attract customers are an inefficient marketing ploy.

Question

Quizplus · Accepted Answer

The idea of "there is no free lunch" refers to the concept of opportunity cost, meaning that even if something appears to be free, there are hidden costs or trade-offs that we must consider. In the case of a free lunch, we may not pay money for the meal, but we still must give up the opportunity to do something else with that time or money. Therefore, there are always opportunity costs involved, even in seemingly free transactions.

The Idea in Economics That "There Is No Free Lunch