Post Utme Ims U 2023 Commerce Question 11

Practice objective / multiple choice question 11 from the 2023 Post Utme Ims U Commerce examination.

Post Utme Ims U 2023 Commerce Objective / Multiple Choice
Question 11 POST_UTME_IMS_U • 2023 • COMMERCE • objective

A firm specializes in producing a single product. This specialization leads to economies of scale, which can result in lower costs per unit. However, it also limits the firm's ability to respond to changes in market demand. What is the primary advantage of specialization in production?

Answer Options

A. Increased flexibility in responding to market changes
Correct Answer B. Lower costs per unit due to economies of scale
C. Improved product quality
D. Increased market share
Correct Answer
B
Correct Option:
Lower costs per unit due to economies of scale

About This Question

This is Post Utme Ims U 2023 Commerce Question 11. It is one of the objective questions from the 2023 Post Utme Ims U Commerce examination.

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