Asked by Yania Isabel Romero on Jul 28, 2024
Verified
In some cases, specialization allows larger factories to produce goods at a lower average cost than smaller factories.
Specialization
The process of focusing effort and resources on a limited number of activities to gain efficiency or expertise.
Average Cost
The total cost of production divided by the total quantity produced, representing the cost per unit of output.
- Familiarize yourself with the concept and impact of economies of scale in contrast with diseconomies of scale.
- Understand the importance of specialization in realizing economies of scale.
Verified Answer
CK
chandra kharelJul 31, 2024
Final Answer :
True
Explanation :
Specialization enables larger factories to benefit from economies of scale, which can reduce the average cost of production as output increases.
Learning Objectives
- Familiarize yourself with the concept and impact of economies of scale in contrast with diseconomies of scale.
- Understand the importance of specialization in realizing economies of scale.
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