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AP Micro & MacroCore Economic Concepts

Specialization

Specialization is the concentration of an individual, firm, or country on the production of a limited scope of goods and services.

Specialization allows for increased productivity through the division of labor and economies of scale. It also enables trade, as parties specialize in producing goods for which they have a comparative advantage. Specialization occurs at the individual, firm, and national levels and is a key source of economic efficiency and growth.

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