ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Specialization in economics is the process of an organization concentrating its labor and resources on a certain type of production to be more efficient and create a comparative advantage for an economy.

Detailed explanation-2: -Specialization Leads to Economies of Scale As labor is divided amongst workers, workers are able to focus on a few or even one task. The more they focus on one task, the more efficient they become at this task, which means that less time and less money is involved in producing a good.

Detailed explanation-3: -How does labor specialization allow a worker to become more proficient? it allows a worker to focus on fewer tasks & become more skilled in performing those tasks. A firm grows from one to three plants. As a result, the firm’s sales increase, leading to greater marketing expertise.

Detailed explanation-4: -What Is Specialization? Specialization is a method of production whereby an entity focuses on the production of a limited scope of goods to gain a greater degree of efficiency.