Question
Specialisation can only occur when:
A a price has been agreed to buy and sell a product.
B a firm has modern methods of production.
C a firm is more efficient than all others in making a product.
D an entrepreneur sees a business opportunity.
A a price has been agreed to buy and sell a product.
B a firm has modern methods of production.
C a firm is more efficient than all others in making a product.
D an entrepreneur sees a business opportunity.
Ask by Ingram Fuentes. in Pakistan
Mar 26,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
Specialization can occur when a firm is more efficient than others in producing a specific product.
Solution
To determine the correct answer regarding when specialization can occur, let’s analyze each option:
A. A price has been agreed to buy and sell a product.
- This statement relates to market transactions but does not directly address the concept of specialization.
B. A firm has modern methods of production.
- While modern methods can enhance efficiency, specialization can occur even without modern methods, as it is more about focusing on a specific task or product.
C. A firm is more efficient than all others in making a product.
- This option suggests that specialization is linked to efficiency. Specialization often leads to increased efficiency, but it does not require a firm to be the most efficient overall.
D. An entrepreneur sees a business opportunity.
- This option indicates that specialization can arise from recognizing a market need or opportunity, which can lead to focusing on a specific product or service.
Based on this analysis, the most accurate answer is:
C. a firm is more efficient than all others in making a product.
This option captures the essence of specialization, as it implies that a firm focuses on what it does best, leading to greater efficiency in production.
Answered by UpStudy AI and reviewed by a Professional Tutor
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Simplify this solution Mind Expander
Specialisation often springs from the magical combination of efficiency and opportunity. When a firm finds its niche and masters the art of production, they can churn out goods or services faster and better than competitors. This often means fewer resources wasted and maximized output, leading to cost efficiencies that allow for competitive pricing.
Moreover, the world around us is packed with examples of specialization in action. Think of sushi chefs in Japan or artisan bakers in France—they focus on perfecting their craft, becoming the go-to experts in their field. This level of specialization doesn’t just elevate their product; it also enhances the experience for consumers seeking quality.
