Question

which best describes how specialized producers decrease their opportunity costs?
by reducing production costs
by focusing on target markets
by increasing production of certain items
by limiting the types of goods produced

Explanation:

Opportunity cost is what is given up to produce something else. Specialized producers decrease opportunity costs by focusing on a narrow range of goods (limiting types produced). This allows them to gain efficiency (e.g., through division of labor, expertise), so the cost of forgoing other production (opportunity cost) drops. Reducing production costs relates to explicit costs, focusing on target markets is about sales/marketing, and increasing production of certain items doesn’t directly address opportunity cost like specialization (limiting goods) does.

Answer:

D. by limiting the types of goods produced