Which of the following is NOT a result of specialization?

• A. Greater interdependence among producers
• B. Elimination of the need for trade
• C. Reduction in opportunity cost
• D. Increased efficiency in production

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the concept of specialization in microeconomics. Specialization occurs when individuals, firms, or countries focus on producing a limited range of goods or services to increase efficiency and output.
2. Step 2: Recognize that specialization typically leads to greater interdependence among producers because each producer relies on others to supply goods or services they do not produce themselves.
3. Step 3: Note that specialization usually results in increased efficiency in production since focusing on a narrower set of tasks allows producers to become more skilled and reduce wasted resources.
4. Step 4: Understand that specialization can reduce opportunity cost because producers allocate resources to activities where they have a comparative advantage, minimizing what they give up to produce a good or service.
5. Step 5: Identify that specialization does NOT eliminate the need for trade; rather, it often increases the need for trade because producers depend on others to obtain goods and services they do not produce themselves.