Question 30
POST_UTME_LAUTECH
•
2019
•
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 the production process.
Answer Options
A.
Specialization leads to increased productivity and efficiency in the production process because it allows 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 the production process because it requires firms to invest in new equipment and training, thereby increasing costs and reducing output.
C.
Specialization leads to no change in productivity and efficiency in the production process because it is a neutral concept that has no impact on production costs or output.
Correct Answer
D.
Specialization leads to increased productivity and efficiency in the production process because it allows 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 the production process because it allows firms to take advantage of economies of scale, thereby reducing production costs and increasing output.
About This Question
This is
Post Utme Lautech
2019
Commerce
Question 30.
It is one of the
objective
questions from the
2019
Post Utme Lautech
Commerce
examination.