Generally, Specialization Leads to

question 354

Multiple Choice

Generally, specialization leads to

• A) constant opportunity costs.
• B) greater productivity.
• C) reductions in people's skill levels.
• D) greater self-reliance.

---

Definitions:

Fixed Costs

Business expenses that remain unchanged regardless of the level of production or sales activities, such as rent, salaries, and insurance.

Breakeven Volume

The quantity of output or sales at which total revenues equal total costs, resulting in no profit or loss.

Sales Revenues

The total amount of money generated from sales of goods or services by a company before any expenses are subtracted.

Contribution Margin

The difference between sales revenue and variable costs, used to cover fixed costs and generate profit.