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 the demand for food has an inelastic PeD.


Explain why income tax in the UK is an example of progressive taxation.


The National Living Wage (NLW) government policy target is to increase the NLW to £9 per hour by 2020. Explain two possible impacts of this policy on the UK supermarket industry.


Give the definition of an externality and explain why it is a market failure?