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Specialisation and trade

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Question 17

A manufacturer of electric scooters transitions its factory floor from a system where individual workers assemble complete scooters to a highly specialised assembly line where each worker performs a single, repetitive task.

Which row in the table below correctly identifies the most likely impact of this division of labour on the firm's average cost of production and its vulnerability to production bottlenecks?

Average cost of productionVulnerability to production bottlenecks
AIncreasesDecreases
BDecreasesIncreases
CDecreasesDecreases
DIncreasesIncreases

Row A

Row B

Row C

Row D

Specialisation and trade Questions

  1. A Level
  2. /Economics
  3. /Specialisation and trade