Final dates! Join the tutor2u subject teams in London for a day of exam technique and revision at the cinema. Learn more

Topics

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.

© 2002-2024 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.