Specialization arises because
A) some people don't like doing some tasks.
B) differences in the costs of production give some producers a comparative advantage in the production of particular goods or services.
C) the government directs resources into certain activities.
D) inefficient production forces producers to trade.

Question

Quizplus · Accepted Answer

Specialization arises because differences in the costs of production give some producers a comparative advantage in the production of particular goods or services. As a result, producers specialize in producing those goods or services in which they have a comparative advantage and trade with others to obtain the other goods and services that they require. This allows for efficient production and mutual benefit for all parties involved.

Specialization Arises Because