Specialisation and competition Flashcards
Benefit of specialisation for the consumer
Lower prices
Better quality
Benefits of specialisation for the worker
Higher wages
Likely to get promoted
Why is there competiton
There is more than one supplier for each type of good/services. Similar companies want the same customers. T
Non-price competition
Store loyalty cards
Home deliveries
Extension of opening
Other services included
Benefits of specialisation for the firm
Higher productivity
Lower average costs
Cost of specialisation for the worker
Not flexible
Boredomu
Cost of specialisation for the firm
Specialist training for workers is expensive
Interdependent on workers
What are the factors of production
Capital, enterprise, land and labour
Cost of specialisation for the consumer
Lower quality
Higher prices
Less choice
How is productivity increased by specialisation
As a person is good at something they will in the long run get faster so productivity is increased
Benefits of a competitive market on the business
Firms are encouraged to cut costs by innovating and increasing productivity.
Benefits of competition for the consumer
Improved quality
Low cost
More varietyuy
Cost of competition on businesses
Small companies cant compete
Market share is divided against many
Cost of competition on the consumer
Quality can be lowered
After sale service can suffer
