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  • Three reasons why specialization increases production

Assembly Line Efficiency Analysis

An automotive assembly plant has significantly increased its output. One key factor is that experienced workers on the assembly line can perform their specific tasks, like installing doors or dashboards, much faster and with fewer errors than new employees. Additionally, the plant manufactures vehicles on such a massive scale that it can negotiate significantly lower prices for raw materials like steel and rubber from its suppliers. Identify two distinct economic principles that explain the plant's increased production efficiency in this scenario, and briefly describe how each one applies.

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  • Assembly Line Efficiency Analysis