The benefits of specialisation and division of labour
Specialisation means workers or firms focus on one task or product. This raises output per worker and cuts the cost of producing each unit.
Real World
Henry Ford's introduction of the moving assembly line at Highland Park in 1913 cut the time to build a Model T from over 12 hours to around 93 minutes by assigning each worker a single repeated task, slashing unit costs.
Exam Focus
For 'evaluate' questions, always include a limitation of division of labour (e.g. worker alienation, repetitive strain) to access the higher mark band.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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