Post Utme Uniben 2020 Commerce Question 11

Practice objective / multiple choice question 11 from the 2020 Post Utme Uniben Commerce examination.

Post Utme Uniben 2020 Commerce Objective / Multiple Choice
Question 11 POST_UTME_UNIBEN • 2020 • 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 by allowing firms to focus on producing a specific good or service, thereby reducing production costs and improving quality.
B. Specialization leads to decreased productivity and efficiency by limiting the range of goods and services produced, thereby reducing market share and revenue.
C. Specialization has no impact on productivity and efficiency, as it is solely dependent on the availability of resources and labor.
Correct Answer D. Specialization leads to increased productivity and efficiency by allowing firms to take advantage of economies of scale and scope.
Correct Answer
D
Correct Option:
Specialization leads to increased productivity and efficiency by allowing firms to take advantage of economies of scale and scope.

About This Question

This is Post Utme Uniben 2020 Commerce Question 11. It is one of the objective questions from the 2020 Post Utme Uniben Commerce examination.

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