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Economics

Student Videos

Difference between Renewable Goods and Free Goods

Level:
AS
Board:
AQA, Edexcel, OCR, IB, Eduqas, WJEC

This video looks at the difference between renewable resources and free goods which have a zero opportunity cost

Free Goods

Free goods have a zero marginal cost of supply - they do not use use factors of production when extra units are supplied.

An example might be solar energy in a country where annual hours of sunshine are high. Once a solar panel has been installed and connected to a grid, the marginal cost of renewable energy from solar power can be considered close to zero.

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