Question

Suppose you have a team of two workers: one is a baker and one is a chef. Explain why the kitchen can produce more meals in a given period of time if each worker specializes in what they do best than if each worker tries to do everything from appetizer to dessert.

Answer 1

The kitchen will be able to produce more meals in a given period of time when each worker specializes in what they do best because of division of labor and theory of comparative advantage.

When each worker produces the good in which he specializes in,then they will be able to produce it efficiently in less time than when they try to do everything which will lead to wastage of time and underproduction.

Specialization leads to economies of scale and lowers production costs so both baker and chef will be able to produce more goods in the field they specializes in at a lower per unit cost than when they try to do each other work.