Question 16
POST_UTME_ABU
•
2023
•
COMMERCE
•
objective
The concept of specialization in production is closely related to the idea of comparative advantage. Explain how specialization can lead to increased productivity and efficiency in a firm.
Answer Options
Correct Answer
A.
Specialization leads to increased productivity and efficiency because it allows firms to focus on producing a specific good or service, thereby reducing costs and improving quality.
B.
Specialization leads to decreased productivity and efficiency because it limits the firm's ability to diversify and adapt to changing market conditions.
C.
Specialization has no impact on productivity and efficiency because it is simply a matter of firms producing what they are best at.
D.
Specialization leads to increased productivity and efficiency because it allows firms to take advantage of economies of scale and reduce their costs.
Correct Answer
A
Correct Option:
Specialization leads to increased productivity and efficiency because it allows firms to focus on producing a specific good or service, thereby reducing costs and improving quality.
About This Question
This is
Post Utme Abu
2023
Commerce
Question 16.
It is one of the
objective
questions from the
2023
Post Utme Abu
Commerce
examination.