the phrase theres no such thing as free lunch means opportunity cost in economic terms.
the phrase theres no such thing as free lunch means opportunity cost in economic terms.
what does the phrase theres no such thing as free lunch mean in economic terms?
opportunity cost
in economics, tanstaafl demonstrates opportunity cost. greg mankiw described the concept as follows: "to get one thing that we like, we usually have to give up another thing that we like. making decisions requires trading off one goal against another." the idea that there is no free lunch at the societal level applies only when all resources are being used completely and appropriately – i.e., when economic efficiency prevails. if not, a 'free lunch' can be had through a more efficient utilization of resources. or, as fred brooks put it, "you can only get something for nothing if you have previously gotten nothing for something." if one individual or group gets something at no cost, somebody else ends up paying for it. if there appears to be no direct cost to any single individual, there is a social cost. similarly, someone can benefit for "free" from an externality or from a public good, but someone has to pay the cost of producing these benefits. (see free rider problem and tragedy of the commons.)
there ain't no such thing as a free lunch
there ain't no such thing as a free lunch









































"there ain't no such thing as a free lunch" (alternatively, "there is no such thing as a free lunch" or other variants) is a popular adage communicating the idea that it is impossible to get something for nothing. the acronyms tanstaafl, tinstaafl, and tnstaafl are also used. the phrase was in use by the 1930s, but its first appearance is unknown. the "free lunch" in the saying refers to the 19th-century practice in american bars of offering a "free lunch" in order to entice drinking customers.
there ain't no such thing as a free lunch