Exchange and Opportunity Cost The Principle of Comparative Advantage o Should Paula update her own web page? Time to update Time to complete web page bicycle repair Paula 20 minutes 10 minutes Beth 30 minutes 30 minutes Opportunity Cost of Opportunity Cost of a updating a web page bicycle repair Paula 2 bicycle repairs 0.5 web page updates Beth 1 bicycle repair 1 web page update Chapter 2: Comparative Advantage: The Basis for Exchange Slide 7MB MC Chapter 2: Comparative Advantage: The Basis for Exchange Slide 7 Exchange and Opportunity Cost ◼ The Principle of Comparative Advantage ⚫ Should Paula update her own web page? Time to update web page Time to complete bicycle repair Paula 20 minutes 10 minutes Beth 30 minutes 30 minutes Opportunity Cost of updating a web page Opportunity Cost of a bicycle repair Paula 2 bicycle repairs 0.5 web page updates Beth 1 bicycle repair 1 web page update