Specialisation and Division of Labour

Because of the fact that choice involves opportunity cost, the factors of production have to be used in the most efficient way. This is achieved through Specialisation and Division of Labour. This means every individual performs a specific task only so that he can give in the best output. There are advantages and disadvantages related with division of labour. 

Advantages

Specialisation results in greater efficiency and productivity

Time and resources are saved as the workers become for conversant with the process

Disadvantages

Repeatedly doing the same job can result in boredom for the workers

If a worker cannot complete his or her job on time this may result in a bottleneck for the whole production process.