In Some Cases, Specialisation Allows Larger Factories to Produce Goods

question 17

True/False

In some cases, specialisation allows larger factories to produce goods at a lower average cost than smaller factories.

---

Definitions:

Quantity Demanded

The amount of a good or service that consumers are willing and able to purchase at a given price.

Price Ceiling

A legal limit on how high the price of a product can be charged in the market.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the actual amount they do pay.

Producer Surplus

The difference between the amount producers are willing to sell a good for and the actual amount they receive by selling it at the market price.