Question

What advantage does a firm that uses labor specialization have over a firm that does not?

A
It can move its workers to different phases of production without any retraining.
B
It can negotiate cheaper prices on raw materials needed from its suppliers.
C
It can rely on more skilled workers to lower its overall labor cost.
It can produce goods or services more quickly and at a lower cost.

Answer 1

It can produce goods or services more quickly and at a lower cost.

Answer: Option D

Step-by-step explanation:

Labor specialization is where labor who is a specialist in a particular job work in the factories working where they excel and since they are specializing in that job, they can do that work very quickly and can also use the resources efficiently and in an optimum way.

It will obviously lead to the decrease in the cost of the production of the goods and also the time of production is also reduced. These are the reasons why labor specialization is preferred in the firms for producing the goods.