How do you interpret the phrase there's no such thing as a free lunch and a free lunch is possible in term of the production possibilities curve?

Answer 1

"There is no free lunch" = someone pays for it somewhere along the line!

Taxpayers?
Private entity (charity, business, etc.)?
Someone ...

http://en.wikipedia.org/wiki/There_ain't_no_such_thing_as_a_free_lunch