The Expression "There's No Such Thing as a Free Lunch

question 128

Multiple Choice

The expression "There's no such thing as a free lunch" means that

• A)services may be free, but goods are never free
• B)even if it has a price of zero, a good or service has a cost
• C)charitable organizations should not serve free lunches to the poor
• D)poor people are really the ones who pay for their allegedly free lunches
• E)someone has to pay the market price for a good or service

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Definitions:

Fixed Costs

Costs that do not change with the volume of production or sales, such as rent, salaries, and insurance premiums.

Business Plan

A formal document detailing the goals, strategy, market, and financial projections for a business's operations.

Operating Income

The profit realized from a business's core operations, excluding deductions of interest and taxes.

Variable Cost

A cost that changes in proportion to the level of activity or volume of output in a business.