Which of the following is NOT a reason that people and firms can increaseproductivity by focusing on one specific activity?OEconomies of scopeO Learning by doingDifferences in ability or Comparative advantageO Economies of scale

Focusing on a few priorities firm will be able to see the results faster. Firms increase…

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Which of the following is NOT a reason that people and firms can increase productivity by focusing on one specific activity?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter2: Choice In A World Of Scarcity

Section: Chapter Questions

Problem 2SCQ: Return to the example in Figure 2.4. Suppose there is an improvement in medical technology that...

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Concept explainers

Market Failure Analysis

To understand Market failure, we need to first understand welfare economics. An Italian economist, Vilfredo Pareto stated that allocation of resources in an efficient manner such that an economic change, which harms no one and makes someone better off, indicates an increase in social welfare. It is also called Pareto Optimality, where resources cannot further be reallocated without harming one. This does not apply to those economic changes, which harm some and benefit others. social welfare increases if the utility of any of its members' increases and none decrease in the economy.

Question

Which of the following is NOT a reason that people and firms can increase
productivity by focusing on one specific activity?
OEconomies of scope
O Learning by doing
Differences in ability or Comparative advantage
O Economies of scale

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