Although Specialization of Labor Increases Efficiency of Production, It Can

question 231

Multiple Choice

Although specialization of labor increases efficiency of production, it can lead to another major problem:

• A)the need to exchange goods among producers.
• B)the need to remain fully employed.
• C)the depletion of natural resources.
• D)assuring that exchange leads to mutual gains.
• E)All of the above are correct.

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Definitions:

Minimum

The lowest allowable or possible amount, level, or point.

Marginal Cost

The amount needed to generate one more unit of a good or service.

Average Total Cost

The overall expense of manufacturing, when dispersed across the number of products made, encompassing both constant and fluctuating expenses.

Average Variable Cost

The sum of all costs that fluctuate with production volume, divided by the total amount of goods produced.