Final answer:
Organizing a company by function offers the benefit of economies of scale, which leads to lower average costs as production increases. Specialization within functions such as on an assembly line enhances efficiency and productivity, benefiting society's consumption needs.
Step-by-step explanation:
An advantage of organizing a company by function is that it allows businesses to take advantage of economies of scale. When functions are specialized, such as in a production facility, the more units that are produced, the lower the average cost per unit becomes. This is due to specialized tasks and large-scale operations that drive efficiency.
For instance, if a factory produces 50,000 cars instead of 100, it can utilize an assembly line with huge machines and workers who are experts in their specialized roles, significantly reducing the cost of production per car. As a result, the company can offer better product prices, improve profitability and competitiveness, and provide more value to consumers.
Overall, this specialization within organizational functions enhances workers' ability to focus on their skills, increases productivity, and supports the society's consumption needs more efficiently than if every individual tried to produce all goods independently.