Exchange and Opportunity Cost a The Principle of Comparative Advantage o 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 10MB MC Chapter 2: Comparative Advantage: The Basis for Exchange Slide 10 Exchange and Opportunity Cost ◼ The Principle of Comparative Advantage ⚫ Everyone does best when each person (or each country) concentrates on the activities for which his or her opportunity cost is lowest