- Group(s): Key terms and concepts
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.
From the Reference Library
Teacher of Economics 5 days left to apply
Harrow School, Middlesex
Pearson, Home based
- Browse all jobs ›