A short introductory video looking at the difference between renewable resources and free goods which have a zero opportunity cost

2. Renewable Resources and Free Goods
• Renewable resources:
– Renewable resources (in theory) are
replaceable if the rate of extraction of
the resource is less than the natural
rate at which the resource renews
– Examples of renewable resources are
solar energy, oxygen, biomass, fish
stocks and forestry
Renewable resources
Free goods

3. Renewable Resources and Free Goods
• Renewable resources:
– Renewable resources (in theory) are
replaceable if the rate of extraction of
the resource is less than the natural
rate at which the resource renews
– Examples of renewable resources are
solar energy, oxygen, biomass, fish
stocks and forestry
• Free Goods
– Free goods do not use up any factor
inputs when supplied
– Free goods have a zero opportunity
cost i.e. the marginal cost of supplying
an extra unit of a free good is zero
Renewable resources
Free goods