2
QuizMultiple Choice

Microeconomics — Test

Question 2 • Economics

Which best describes how specialized producers decrease their opportunity costs?

Answer
A
by increasing production of certain items
B
by reducing production costs
C
by focusing on target markets
D
by limiting the types of goods produced

Explanation

Specialization means concentrating production on a smaller range of goods rather than trying to make everything. This lets producers use their resources and skills where they are most productive, lowering the opportunity cost of what they give up. Therefore, limiting the types of goods produced best describes how specialized producers decrease opportunity costs.

AI-written and checked against the verified answer.

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