If a commodity is provided free to the public by the Government, then
✓ Correct answer: c) the opportunity costs are transferred from the consumers of the product to the tax-paying public.
ExplanationOpportunity cost: refers to the value of the next best alternative foregone when a choice is made.Even if a com- modity is provided “free” to the public, resources (such as gov- ernment funds, labor, or infrastructure) are still required for its provision.Option (c) is correct : If a commodity is provided free to the public by the Government, then the opportunity cost is trans- ferred from the cons-umers of the product to the tax-paying public.As per microeconomics, the opportunity cost is zero for free goods such as air and common goods such as fish/grazing land.For public goods such as street lights and defence, the op- portunity cost is involved (The government could have spent that much money on street lights rather than on the military).So, the opportunity cost is not zero.357
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