example, if a factory produces only 100 cars per year, each car will be quite expensive to make on average.

However, if a factory produces 50,000 cars each year, then it can set up an assembly line with huge machines

and workers performing specialized tasks, and the average cost of production per car will be lower. The

ultimate result of workers who can focus on their preferences and talents, learn to do their specialized jobs

better, and work in larger organizations is that society as a whole can produce and consume far more than if

each person tried to produce all of their own goods and services. The division and specialization of labor has
been a force against the problem of scarcity.

Trade and Markets

Specialization only makes sense, though, if workers can use the pay they receive for doing their jobs to

purchase the other goods and services that they need. In short, specialization requires trade.
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