Question

Which best explains why producers choose to specialize? Check all that apply.

Answer 1

Answer:

1. to gain a comparative advantage

2. to increase efficiency

Explanation:

Specialization involves concentrating on producing a few items that once can produce better than others.

Specializing in producing a  few preferred goods and services makes a person, company, or country more efficient in resource usage. They consume fewer inputs, such as labor, while making the goods and services. The use of fewer inputs is increasing efficiently, which makes their products cost less compared to competitors.

Specialization makes a company or individual an expert in what they do. Experts make quality products. High quality at competitive prices gains a country or company comparative advantage over the others.