Which of the following best describes how producers benefit from specialization?

• A. Specialization decreases the skills of workers, making production slower.
• B. Specialization causes producers to rely less on trade with others.
• C. Specialization allows producers to focus on a specific task, increasing efficiency and output.
• D. Specialization leads producers to produce a wider variety of goods, reducing efficiency.

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the concept of specialization in microeconomics. Specialization occurs when producers or workers focus on a narrow range of tasks or goods rather than producing everything themselves.
2. Step 2: Recognize that specialization typically leads to increased efficiency because individuals or firms become more skilled and faster at their specific tasks, reducing the time and resources needed for production.
3. Step 3: Consider how specialization affects output. By focusing on what they do best, producers can increase the quantity and quality of their output, which benefits both themselves and the overall economy.
4. Step 4: Analyze the relationship between specialization and trade. Specialization often increases reliance on trade because producers exchange their specialized goods or services for others they do not produce.
5. Step 5: Conclude that the best description of how producers benefit from specialization is that it allows them to focus on specific tasks, thereby increasing efficiency and output, rather than decreasing skills or reducing efficiency.