specialization and the division of labor Flashcards
1
Q
What is specialization?
A
A system of organization where a firm, country, region, or even an individual focuses on a narrow rand of goods/services
2
Q
What is the Division of labor?
A
Specialization by workers, where one task is broken down into a large number of small tasks
3
Q
What is Money?
A
Any item such as notes and coins which fulfills the function of a medium of exchange, a measure of value, a store of value, and a method for defer payment
4
Q
What does division of labor do yo average cost of production?
A
Reduces cost
5
Q
What is average cost?
A
Cost per unit output processed
6
Q
How do you calculate average cost?
A
Average cost=total cost/output
