Division of labour. leads to Specialisation
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The division of labor allows individuals and firms to specialize and to produce more for several reasons: a) It allows the agents to focus on areas of advantage due to natural factors and skill levels; b) It encourages the agents to learn and invent; c) It allows agents to take advantage of economies of scale.
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Specialisation at individual level involves giving workers individual jobs so that the worker's capacity to one task in particular will increase. Example, the specialisation of teachers in different subjects in CHSE. Specialisation by individual is called 'division of labour'.
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