Final answer:
When a firm employs specialization of labor, each worker C) concentrates on one task, increasing production efficiency and benefiting from economies of scale, which lowers the cost of production per unit.
Step-by-step explanation:
When a firm divides labor so that workers can specialize, it follows the principles outlined by Adam Smith in his observations of pin factories. In this context, specialization refers to each worker concentrating on executing a particular task in the production process to the best of their ability. This division of labor allows for multiple advantages that increase production efficiency and output.
One of the main reasons why specialization improves productivity is that it allows each worker to become highly skilled at a single task, thereby increasing their speed and competence. Moreover, it minimizes the transition time between different tasks, as workers don't waste time shifting gears from one activity to another. With this singular focus, each worker can produce more effectively than if they were to attempt to divide their time between several tasks or, worse, all of the tasks in the production process.
Additionally, specializing permits firms to exploit economies of scale, which means the average cost of producing each unit decreases as the level of production increases. Such specialization and division are essential because they enable society to overcome the problem of scarcity by producing and consuming much more than if each person tried to be self-sufficient. Therefore, in the context of the division of labor, the worker's role transforms to concentrate on one task, aligning with the most efficient use of human resources in the production chain.
Answer to the Student's Question:
Thus, when a firm divides labor so workers can specialize, a worker concentrates on one task. This is the correct option in the final answer.