ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Specialization Leads to Economies of Scale The more they focus on one task, the more efficient they become at this task, which means that less time and less money is involved in producing a good. Or put another way, the same time and the same money allows for the production of more goods.

Detailed explanation-2: -Consumer benefits: Specialization means that the opportunity cost of production is lower, which means that globally more goods are produced and prices are lower. Consumers benefit from these lower prices and greater quantity of goods.

Detailed explanation-3: -Comparative advantage describes a situation in which an individual, business or country can produce a good or service at a lower opportunity cost than another producer.

Detailed explanation-4: -Economies of scale are cost advantages reaped by companies when production becomes efficient. Companies can achieve economies of scale by increasing production and lowering costs. This happens because costs are spread over a larger number of goods.