Which of the Following Provide the Best Evidence of Specialization

question 139

Multiple Choice

Which of the following provide the best evidence of specialization?

• A)a firm that produces a line of related products, such as eight kinds of breakfast cereal
• B)an architect who is willing to practice in only one geographic area
• C)a physician that practices in a specialty area such as cardiology or orthopedic surgery
• D)a family that eats at Wendy's every Thursday night
• E)a retailer that sells goods but provides no services

---

Definitions:

Breaks Even

A financial situation where total revenues are equal to total costs, resulting in no profit or loss.

Short Run

A period in economics where at least one factor of production is fixed, influencing the responsiveness of a company to changes in market demand.

Marginal Revenue

The additional income earned from selling one more unit of a product or service.

Average Total Cost

The total cost of production divided by the total quantity produced, representing the cost per unit of output.