A manufacturer of high-precision medical devices transitions from a production method where individual technicians assemble entire devices to an assembly-line system with a high degree of division of labour.
Which of the following is the most likely consequence of this transition?
The average cost of production\text{average cost of production}average cost of production decreases as time lost by workers transitioning between different tasks and tools is minimised.
The firm's internal flexibility increases because highly specialised technicians can easily substitute for one another across different stages of assembly.
The risk of structural unemployment for these technicians decreases because their niche skills are highly transferable to unrelated industries.
Workers' intrinsic motivation increases because the repetitive nature of the specialised tasks reduces cognitive fatigue and enhances job satisfaction.
35 exam-style questions on OCR A Level Economics Specialisation and trade. Each one has a worked solution and a mark scheme showing where the marks go.