Question

What is the opportunity cost of distributing goods free of cost?

Answer 1

Opportunity cost of a good is the next best alternative good that has to be given up, in order to produce the given commodity. It can be illustrated by the familiar guns and butter problem. Suppose a country has a given amount of resources, which are equally efficient in the production of guns and butter.

As for the case of free goods, these are the goods freely available in nature i.e. one does not need to pay for these goods, Eg- air, water, sunlight etc. Thus a free good is not scarce and therefore is available without limit as desired by the society, thus no other good needs to undergo it's proudction in order to produce a free good, thus it has zero opportunity cost.

Hope u like the ans.. Plse Mark me as brainlist