1.2.4 Specialisation

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    Division of labour – Employees are organised so that they specialise in one part of                                            the production process

     

    • Specialisation is when each worker is given a specific task in the production process.
    • It makes individual workers more productive as they improve at the task they are given and are able to excel at this task.
    • Output increases due to higher worker productivity which causes the firms costs to lower and then they can offer lower prices to customers.
    • Then they can either reinvest and expand the branches or pay higher dividends to shareholders.

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