C. bring buyers and sellers into contact
D. allow an organization to set prices in relation to their productsIn the market system, an exchange of money for goods, services, or both takes place. A true marketsystem sets the price through bartering, where the goods and services sell for the best price offered bythe buyers, creating equilibrium. For this exchange to occur, the market serves as a meeting place forbuyers and sellers. If the organization sets its prices, there may not be market equilibrium. This mayresult in either a shortage or a surplus.
5. By specializing in the production of one good, a company is able tobenefit from economies of scale which increases its revenue. Which of thefollowing is an attribute of specialization?
Specialization helps a business be more efficient.
A. Reducing costs by creating a surplus
B. Saving time by allowing a worker to focus on one task
C. Encouraging workers to learn new skillsD. Encouraging workers to learn a number of different skillsSpecialization occurs when a firm uses its available resources to produce one product or familyof products rather than producing multiple goods and spreading the firm's resources in many directions.By focusing or concentrating on one task, workers can achieve a higher level of training in that skill andcan become more productive. Firms strive to produce only the amount of product they can sell tomaximize their profits.