With constant costs in production, specialization tends to proceed to complete specialization, but with increasing costs, specialization will not be complete. True or False

Question

Isaiah Montgomery

Social Studies

28 May, 18:50

With constant costs in production, specialization tends to proceed to complete specialization, but with increasing costs, specialization will not be complete. True or False

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Answers (1)

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Brett Casey · Answer 1

TRUE

Explanation:

Specialization has to do with the process of making use of resources that are available in producing and concentrating mainly on certain produce so as to make use of the available resources effectively and efficiently.

However, in specialization in international market, specialization are, mostly complete when the price is constant and stable in international trade but incomplete when there is increase in costs because it will lead to increase in opportunity cost in the market.