Marginal Cost Revenue Equations Social Cost Specialisation Specialisation happens when one individual, region or country concentrates in making one good. The division of labour is a particular type of specialisation where the production of a good is broken up into many separate tasks each performed by one person. An early economist, Adam Smith, suggested that without any help one worker could produce only ten pins in one day.
Workers begin to take less pride in their work.
If one machine breaks down then the entire factory stops. Some workers receive a very narrow training and may not be able to find alternative jobs. Mass-produced goods lack variety. Limits to the Division of Labour Mass production requires mass demand. Barter is the direct exchange of goods for other goods.