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Unformatted text preview: 3 web page updates per hour Barb Barb 1 repair/hr 1 repair/hr 2 web page updates per hour updates per hour Pat Pat Productivity in bicycle repair bicycle repair Productivity in programming programming Chapter 2: Comparative Advantage: The Basis for Exchange Slide 11 Exchange and Opportunity Cost The Principle of Comparative Advantage z Everyone does best when each person (or each country) concentrates on the activities for which his or her opportunity cost is lowest. Chapter 2: Comparative Advantage: The Basis for Exchange Slide 12 Exchange and Opportunity Cost Economic Naturalist z Televisions and videocassette recorders were developed and first produced in the United States. z Why did the United States fail to retain its lead in these markets?...
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This note was uploaded on 02/20/2012 for the course ECON 202 taught by Professor Brightwell during the Spring '08 term at Texas A&M.
- Spring '08
- Opportunity Cost