Asked by Khalid Ahmed Daamseh on Jul 30, 2024
Verified
The use of specialization to achieve economies of scale is one reason modern societies are as prosperous as they are.
Economies of Scale
The cost advantages that enterprises obtain due to their scale of operation, typically characterized by a reduction in per-unit cost with increasing output.
Specialization
The process by which individuals, firms, or countries focus on producing a certain type of goods or services, often to achieve greater efficiencies or quality.
- Understand the idea and repercussions of economies of scale together with diseconomies of scale.
- Identify the function of specialization in attaining economies of scale.
Verified Answer
IA
ifreelance academicAug 06, 2024
Final Answer :
True
Explanation :
Specialization allows individuals, businesses, and countries to focus on producing a limited range of goods or services, leading to increased efficiency, higher quality, and lower production costs, which in turn contribute to economies of scale and overall prosperity.
Learning Objectives
- Understand the idea and repercussions of economies of scale together with diseconomies of scale.
- Identify the function of specialization in attaining economies of scale.
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