- 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.
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Pearson, Home based
Frensham Heights School, Nr Farnham, Surrey
tutor2u, Home based
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