ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A surf shop lowers the price on swimsuits.
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A dry cleaner spends extra time on grease spots.
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An assistant in a tailoring shop only replaces zippers.
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An online clothing outlet offers customized monograms.
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Detailed explanation-1: -Specialization is the practice of an individual or business focusing their productive capacity (skills, resources, etc.) on a limited set of goods and services. Specialization is important because it greatly improves productivity – the ratio of inputs to outputs. The typical example is the assembly line.
Detailed explanation-2: -Specialization-A method of production in which each agent (firm) concentrates on a limited number of activities. Specialization and exchange. Exchange-The act of trading with others to obtain what we desire.
Detailed explanation-3: -Example of Specialized Labor and Economies of Scale An assembly line for a manufacturing company provides a useful example of specialization leading to economies of scale.
Detailed explanation-4: -Specialization is can be observed when individuals or businesses concentrate on a single activity or an area of expertise when producing a good or service. In economics, specialization is important because it boosts the overall productivity of a business or country.