Specialization may be conducive to an expansion of total output even though the individuals involved may have identical abilities.

Question

Quizplus · Accepted Answer

Specialization allows individuals to focus on their comparative advantage and produce goods or services more efficiently, which can lead to an increase in total output. It does not necessarily require individuals to have different abilities, but rather to specialize in different tasks within a production process.

Specialization May Be Conducive to an Expansion of Total Output