Final answer:
The concept where a large task is divided into smaller tasks assigned to specialists is called division of labor. This allows for increased efficiency and economies of scale in production. The correct answer to the student's question is 'a. division of labor'.
Step-by-step explanation:
The idea that a large production-related task can be completed more efficiently by breaking it down into smaller tasks and having each task completed by a specialist is known as division of labor. This concept is vital in enhancing productivity and is deeply rooted in the economic principle that breaking down the production process into specialized roles allows businesses to optimize and increase their output. The Scottish economist Adam Smith famously illustrated this principle with his example of a pin factory, where dividing the production into specialized tasks drastically improved efficiency.
Another crucial advantage of division of labor is that it enables businesses to achieve economies of scale. As production volumes increase, the average cost per unit typically decreases due to factors like specialized labor, better machinery, and optimized processes. This reduction in costs as production scales up benefits both the producer, with lower costs, and the consumer, with lower prices and greater product availability.
In conclusion, the best answer to the question is 'a. division of labor' because it describes a process by which production tasks are divided into specific roles, resulting in increased efficiency and productivity.