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.

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Answered by Oke U. Economics tutor

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