Correct Option
Opportunity cost represents the value of the next best alternative that must be foregone when a choice is made. When the government provides a commodity free to the public, the direct monetary cost to the individual consumer is zero. However, the resources used to produce or procure this commodity are not free to society. These resources could have been used for alternative public projects or services. The government finances such provisions using public revenue, which is primarily collected through taxes. Therefore, the economic burden, or the opportunity cost, is effectively shifted from the direct consumers of the product to the general tax-paying public who fund the government's expenditure.
Incorrect Options
Option (a): Opportunity cost is rarely zero in an economy with scarce resources. Even if a good is provided free, the resources (labour, capital, raw materials) used to produce it have alternative uses, implying a non-zero opportunity cost for society.
Option (b): The opportunity cost is not ignored. While consumers may not pay directly, the cost is borne by society through the government's budget. Economic analysis always considers the true cost of resource allocation.
Option (d): The government itself does not 'bear' the cost in the sense of generating its own funds independently. Instead, it acts as an intermediary, collecting funds from the tax-paying public and allocating them to provide the commodity. Thus, the cost is transferred to the tax-paying public, not solely to the government as a separate entity bearing the ultimate burden.