Is complete specialization more or less likely if production possibility frontiers exhibit increasing costs rather than constant costs?
Complete specialization is when one entity focuses on one part of the production process to increase efficiency. For example, one person produces the tires, another delivers them, another puts them on the car ready to be sold, etc.
Answer and Explanation: 1
The production possibilities frontier shows all the possibilities of production at given inputs and with a limited amount of resources.
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fromChapter 57 / Lesson 5
In economics, production possibilities allow us to visualize opportunity costs. Learn about the definition of opportunity costs of production, explore graphing costs through a model called a production possibilities chart, and consider what might happen upon moving the curve.