Question

what benefits and limitations of businesses specializing in the prodution and supply of just one type of good

Answer 1

Limited market: If the demand for the product decreases or the market becomes saturated, the business may struggle to sell its products.

Dependence on a single product: If something goes wrong with the production of the product, the business may struggle to continue operating.

Lack of diversification: Specializing in just one product means that the business is not diversified and may be more vulnerable to market fluctuations.

Answer 2

Hello,

I hope you and your family are doing well!

The benefits of specializing in the production and supply of just one type of good include achieving economies of scale, developing expertise in a specific market, and reducing costs. Limitations include limited market opportunities, dependence on a single product, and difficulty diversifying.

----

Happy Holidays!