3.4 Specialization and Trade
MyEconLab Concept Video
The next time you visit your favorite fast-food restaurant, watch what the workers are doing. You might see one person re-stocking the bread, salad materials, meat, sauces, boxes, and wrappers; another working the grill and another the fry maker; another assembling meals; and yet another taking orders and payments. Imagine how long you would wait for your burger if each worker performed all the tasks needed to fill each customer’s not-so-fast-food order.
Specialization makes people more productive in two ways: It brings absolute advantage and comparative advantage.
Specialization boosts ...
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