Specialization Leads to Greater Production Than Is Otherwise Possible

question 23

Multiple Choice

Specialization leads to greater production than is otherwise possible

• A) only if different workers have different natural abilities
• B) only if production is organized within business firms
• C) under capitalism,but not under communism
• D) even if different workers have identical natural abilities
• E) under communal ownership,but not under capitalism

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Definitions:

Production Function

An equation that specifies the output of a firm, an industry, or an entire economy for all combinations of inputs.

Input

Resources used in the production process to create goods or services, including labor, materials, and capital.

Returns To Scale

An economic concept describing how the increase in inputs affects the level of output of a production process.

Production Function

A mathematical equation that describes the relationship between inputs and the maximum output that can be produced with those inputs.