Microeconomics

Cory

Microeconomics

Wednesday eve

Division of labor

The division of labor is essential in any efficient industry. The division of labor can be defined as splitting up a certain trade (i.e. making straight pins) so it can be performed more efficiently. This is most commonly seen in the manufacturing industry where one person may be qualified to produce the final product all by themselves they probably would not be able to make even a single product in one day. When you split this trade up between several people the output is much higher.

There are benefits that transpire from this business philosophy, such as; the social animal theory is appeased. The social animal theory is the idea that people would rather work in groups than alone. When we divide a complex task up into several skilled trades we allow the workers to work in a social environment