Specialization's mechanization trade-off

Steps:

• Specialization divides tasks, enabling repetitive work to be automated.
• This increases mechanization, cutting firm costs and boosting efficiency.
• Workers face disadvantages like job displacement or reduced job variety.
• Evaluate options for firm gain versus worker loss.

Why A is correct:

• Greater mechanization from specialization lowers production costs for the firm (via efficiency gains) but disadvantages workers through potential unemployment or monotonous roles, per division of labor principles.

Why the others are wrong:

• B: Higher labour productivity raises firm output and worker wages, benefiting both.
• C: Higher skill levels improve worker employability and earnings, an advantage for them.
• D: Longer training times build worker expertise, enhancing their career prospects.

Final answer: A