Question 11
POST_UTME_BELLS_UNIVERSITY
•
2025
•
COMMERCE
•
objective
The concept of specialization in production is closely related to the idea of comparative advantage. Explain how specialization leads to increased productivity and efficiency in production.
Answer Options
A.
Specialization leads to increased productivity and efficiency in production by allowing firms to focus on producing a specific good or service, thereby reducing production costs and increasing output.
B.
Specialization leads to decreased productivity and efficiency in production by forcing firms to produce a limited range of goods or services, thereby reducing output and increasing costs.
C.
Specialization has no impact on productivity and efficiency in production, as firms can still produce a wide range of goods or services.
Correct Answer
D.
Specialization leads to increased productivity and efficiency in production by allowing firms to take advantage of economies of scale, thereby reducing production costs and increasing output.
Correct Answer
D
Correct Option:
Specialization leads to increased productivity and efficiency in production by allowing firms to take advantage of economies of scale, thereby reducing production costs and increasing output.
About This Question
This is
Post Utme Bells University
2025
Commerce
Question 11.
It is one of the
objective
questions from the
2025
Post Utme Bells University
Commerce
examination.