Specialisation

How does it work?

1) Assigned a task that is accompanied with a set of skills

2) Broken down into components --- each for an individual which is best suited 

2)A worker will specialise in one component of the manufacturing process--> this improves efficiecy and productivity 

4) Rendered efficiently with slots of resources= equates to increased output 

UNIT COST-- due to specialisation 

-As output increases --- achieve lower cost per unit

- This means economies of scale-- advantages to a business as can exploit this WHEN expanding production 

-goal is to reduce average cost of production 

-also applies to supply and demand of when meeting customers needs and wants 

Dangers of specialation 

- Overspecialisation-- company becomes excellent at working within framework of organsation 

X- However when speciallised in a skill it becomes difficult to transfer to a new workforce (as a result it is difficult to to find an alternative workforce)

- this means that this could lead to unemployment and decline in economy 

ECONOMIC BEHAVIOUR- economic activity derives the need to exchange 

- when people engage in paid work-- they exchange their time effors and skill for income 

-when…