A main advantage of specialization results from ?
Correct answer: A. Economies of large-scale production
- A. Economies of large-scale production
- B. The specializing country behaving as a monopoly
- C. Smaller production runs resulting in lower unit costs
- D. High wages paid to foreign workers
Explanation
Specialization allows production on a larger scale, where division of labour and fixed-cost spreading can reduce average unit cost. Monopoly power and high foreign wages are not the basic gains from specialization.
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