Question

In what way does specialization increase productivity?

A) Specialization reduces scarcity.
B) Specialization reduces the cost of production.
C) Specialization increases the demand for a product.
D) Specialized workers are generally more highly educated.

2

Answer 1

Answer: Specialization reduces the cost of production.

Step-by-step explanation:

Specialization is a method of production where an employee simply focuses on one particular aspect of production or a particular area or department in order to gain more efficiency.

It should be noted that specialization increase productivity as the workers will be more effective and efficient thereby leading to the reduction in the cost of production which will invariably lead to increase in production as there'll be more resources to aid production.