This video looks at the difference between renewable resources and free goods which have a zero opportunity cost
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.
© 2022 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.