He compares marginal units. Generalized wants and specific goods Wants can often be placed into classes, such as a want for recreation, a want for dinner outside the home, a want for clothing. We can say that individuals have a joint want for the good or action. We can say that individuals have competing wants for this good or action. Opportunities to satisfy one's wants by using time are part of the opportunity cost of a good.
Land is really a type of capital good.
The pin-maker as an example of division of labor caused by an employer Specialization in butchery, brewing, and baking caused the a person seeking gain by specializing and then selling the product produced through his specialized actions. Specialization due to natural differences not as important as specialization due to learning. We can expect that under private property rights, the gradual division of labor will make a nation wealthy. Definition of Lowest Opportunity Cost Lowest opportunity cost exists if the combined costs of producing goods are lower under one particular distribution of rights to property than under a different distribution . In the hypothetical market economy, individuals have an incentive to redistribute rights to control resources so that in the resulting distribution, each resource is used in the production activity in which it is judged to have the lowest opportunity cost .