In some cases, specialisation allows larger factories to produce goods at a lower average cost than smaller factories.

Question

Quizplus · Accepted Answer

When a factory specializes in a particular product, it can exploit economies of scale, which allows for larger quantities of the same product to be produced at a lower cost per unit. This can enable larger factories to achieve a lower average cost than smaller factories that may not be able to achieve the same level of efficiency.

In Some Cases, Specialisation Allows Larger Factories to Produce Goods