Production And Efficiency

Question 1

What is the division of labour?

Answer 1

Divides the production process into different stages

Question 2

What is specialization?

Answer 2

Workers are assigned to specific tasks within the production process

Question 3

What are the advantages of specialization?

Answer 3

Higher output
Increased market share
Increased competition

Question 4

What are the disadvantages of specialization?

Answer 4

Disincentive - boring

Question 5

What is the equation of productivity?

Answer 5

Output/ no. of workers

Question 6

What are economies of scale?

Answer 6

Falling long-run average costs as output rises

Question 7

What are the economies of scale? (5) PFMMT

Answer 7

Purchasing
Financial
Marketing
Managerial
Technological

Question 8

What are diseconomies of scale?

Answer 8

Rising long-run average costs as output rises

Question 9

What are the diseconomies of scale? (3) CCC

Answer 9

Control
Co-ordination
Communication