Division of Labor: Division of labor is when tasks are divided among workers based on their skills or expertise. For example, in a car manufacturing plant, one worker may specialize in installing tires while another focuses on assembling engines.
Economies of Scale: Economies of scale occur when the cost per unit decreases as the level of production increases. This means that as more units are produced, the average cost per unit goes down.
Assembly Line: An assembly line is a manufacturing process where products move along a conveyor belt while workers perform specific tasks at each station. This method allows for efficient mass production by dividing the work into smaller steps.