Question 26
POST_UTME_IMS_U
•
2021
•
COMMERCE
•
objective
The concept of specialization in production is closely related to the idea of comparative advantage. Explain how specialization can lead to increased efficiency and productivity in a firm, using the example of a manufacturing company that specializes in producing a particular type of widget.
Answer Options
A.
Specialization leads to increased efficiency and productivity because it allows firms to focus on producing a specific product, thereby reducing production costs and increasing quality.
Correct Answer
B.
Specialization leads to increased efficiency and productivity because it allows firms to take advantage of economies of scale, thereby reducing production costs and increasing quality.
C.
Specialization leads to increased efficiency and productivity because it allows firms to develop specialized skills and knowledge, thereby increasing productivity and quality.
D.
Specialization leads to increased efficiency and productivity because it allows firms to reduce their reliance on external suppliers, thereby increasing quality and reducing costs.
Correct Answer
B
Correct Option:
Specialization leads to increased efficiency and productivity because it allows firms to take advantage of economies of scale, thereby reducing production costs and increasing quality.
About This Question
This is
Post Utme Ims U
2021
Commerce
Question 26.
It is one of the
objective
questions from the
2021
Post Utme Ims U
Commerce
examination.