Saturday, July 28, 2012

Is the sea an example of a free good?

Good morning everyone! Every weekend in the summer thousands of people visit the beach as a way of keeping cool and enjoying a potentially low cost outing. The sea is in theory a free good in the sense that it does not cost anything to swim in it or even get wet for the rest of use who are non swimmers.

However, there are potential costs that we face when we visit the beach. The cost of petrol for driving to the beach, the cost of sunbeds, the cost of food and drinks we consume while we are there. Plus, let us not forget about all the time we spend for preparation.
How much would you be willing to spend to find yourself on the beach right this instant? I am willing to bet that your answer depends on what you are doing right now!

Have a nice weekend!


Post a Comment