Question

What is the impact of division of labour on cost of production?

Answer 1

Division of labour is an economic concept which states that dividing the production process into different stages enables workers to focus on specific tasks. As a result of the division of labour, workers need less training as they only have to master a small number of tasks and It is faster to use one particular tool and do one job. Workers can also concentrate on those jobs which best suit their skills and temperament. This all will ultimately contribute to the overall efficiency of the firm and thereby reducing the cost of production.