Answers two questions about opportunity cost.

1. Economists make decisions by thinking in terms of alternatives. Why do economists believe there is no such thing as a free lunch?

2. Another situation to think about: Should Michael Phelps mow his own lawn? Suppose Michael can mow his lawn in 30 minutes (due to his athletic ability) or he can hire a gardener who can do the same job in 2 hours. Should the fastest person do the job?

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... all things you don't do to get that free lunch. Another example is chosing between the following free events in a weekend: A party, camping, sleeping, watching television, etc. You might chose the one you most want to do, but it is at the cost of the second one you wanted to do. You are still better off, but you forgo the other alternatives.

2. Michael Phelps ...