One reason a country does not specialize completely in production is that production of most goods involves increasing opportunity costs.

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When a country specializes completely in production, it means it is focusing all its resources and efforts on producing a particular good, which may lead to increasing opportunity costs. This is because the resources that are best suited for producing that good will be used up first or will become scarce, leading to higher costs of production, and the resources that are less productive in producing that good will have to be used, resulting in decreasing returns to scale. As a result, a country may choose to not specialize completely in production to avoid increasing opportunity costs and to maintain a diverse economy.

One Reason a Country Does Not Specialize Completely in Production