How can a group of workers , each specializing in certain tasks, produce so much more than the same number of workers who try to

Question

2 years ago

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How can a group of workers , each specializing in certain tasks, produce so much more than the same number of workers who try to

produce the entire good or service by themselves? adam smith offered three reasons. list them and briefly describe the rationale behind each

Social Studies

1 answer:

kogti [31] · Answer 1 · 2023-04-19T01:51:29+03:00

First, specialization in a small job enables people to concentrate on their strengths. Different abilities, talents, and interests make some people excel at certain occupations.

Second, employees who specialize produce faster and better. Third, as production levels rise, unit costs drop. It is also termed taking use of the economies of scale.

This is further explained below.

<h3>How can a group of workers, each specializing in certain tasks, produce so much more than the same number of workers who try to produce the entire good or service by themselves?</h3>

Generally, The first reason is that employees are better able to concentrate on the aspects of the manufacturing process in which they have an advantage when they have specialized knowledge in a single tiny task. Because every individual has a unique set of abilities, interests, and capabilities, there are some professions that are more suited to their profile than others.

In conclusion, The second reason is that employees who specialize in particular jobs frequently learn to produce more rapidly and with better quality than general laborers.

The third reason is that when the level of production increases, the average cost of producing each individual unit decreases.

This occurs because there are more units being produced overall. Utilizing this strategy is also known as taking advantage of economies of scale.