Question

Which most likely results from producers engaging in specialization?

A. Producers reduce their costs.
B. Producers increase their market share.
C. Producers decrease the materials needed for production.
D. Producers always offer more competitive pricing.

Answer 1

The answer is A. Producers reduce their costs.

Answer 2

Specialization is where an individual, firm or country is skilled at producing a product. Producers engaging in specialization would reduce their costs as they would find an easier, quicker and more efficient way to complete the production of the good in less time.