Opportunity cost looks at the cost of taking one option over another. In other words what is the sacrifice that must be taken to choose one choice over another. This might include time, money, or even convenience.
In this section, we also include the division of labor – which helps reduce the opportunity cost of production. By dividing labor, tasks can be done more efficiently. The reasoning behind this is that by having individuals specialise in one area, they are better able to maximise their output through greater expertise.
Table of Contents What is an Assembly Line? Understanding the Assembly Line History of the Assembly Line Types of Assembly Lines Advantages of the Assembly Line Disadvantages of the Assembly Line Examples of Assembly Lines FAQs Assembly Line: Definition, Pros, Cons & Examples Written by Paul Boyce Posted in Microeconomics > Division of Labor Last
The invisible hand was first coined by Adam Smith who explained how the self-interest of the individual benefits the rest of society.
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The division of labor refers to the segmentation of tasks, so each person focuses on a specific part of the production process.
Opportunity cost is the price we pay to take one action over another.
