Increased Specialization in the Production of Goods

question 108

Multiple Choice

Increased specialization in the production of goods

• A) always increases economic surplus.
• B) never increases economic surplus.
• C) has benefits,but no costs.
• D) has costs,but no benefits.
• E) has costs and benefits.

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Definitions:

Constant Returns

A condition in production where increasing the amount of inputs results in a proportional increase in outputs.

U-shaped

A graphical representation describing a situation or relationship that initially decreases, reaches a minimum point, and then increases.

Long-run Average Cost

The cost per unit of output when all factors of production, including capital, are variable and optimized for scale.

Licensed Vendors

Businesses or individuals who have been granted official permission to sell goods or services, often within a particular jurisdiction or for a specific product.