Which one of the following is the most likely consequence of an increase in the division of labour in the production of smartphones?

Decrease in the cost per unit of the phone, as specialisation means greater levels of efficiency meaning more output can be achieved with the same resources, lowering the cost of production per unit. Specialisation is dividing labour up and training people in particular areas in the hopes that they will master those and perform the tasks as well as possible. However, they have a limited amount of tasks and responsibilities to ensure this.

OU

Related Economics GCSE answers

All answers ▸

Explain why demand for food is relatively price inelastic?


What is an opportunity cost?


Draw and label a diagram to show the effects on the equilibrium market position to show the effects of a hot sunny day on the market for ice creams.


Explain two advantages that firms may gain from a horizontal merger.