Final answer:
Specialization is the method whereby a business focuses on producing a limited scope of products or services, maximizing their core competency to gain greater productive efficiency and competitiveness.
Step-by-step explanation:
The method of production where a business or area focuses on the production of a limited scope of products or services is known as specialization. Specialization allows businesses to gain greater degrees of productive efficiency within the entire system of businesses or areas.
By concentrating on a specific set of skills or production techniques, often referred to as a business's core competency, the company can produce more sophisticated products, increase productivity, and enhance competitiveness in the marketplace.
This approach takes advantage of the unique skills, talents, and geographic advantages that individuals and firms have, which allows them to focus on what they do best, leading to more effective production and economic success.