Have you heard someone, or yourself said the above before? I have, in both occasions.
Until I heard the audio book, “Thinking Like an Economist” on my morning run today, I always thought this phrase meant nothing is free, you’ve gotta work for it.
Little did I know that this “no free lunch” thing was actually an economic theory.
What this phrase means, to an economist, is opportunity cost.
Yes, someone may buy you a free lunch, or you may get to enjoy a free movie on YouTube. But the time you spent eating with this person, or watching the free movie, you could’ve used it for something better, more profitable, more meaningful, etc.
What you think was free, you’re actually paying it with opportunity cost.
So, I stand corrected. From today onwards, I’ll only use this phrase in the correct context.
