11 Explain how 'specialization' can be a result of scarcity for a business.

[Sir Afzal Shad]

11 Explain how 'specialization' can be a result of scarcity for a business.
Hint: KN: Cannot produce everything > APP: A farm may grow wheat instead of cotton > AN: It focuses its limited land on the most profitable crop.

Possible Structure - 3 Marker
[KN] >> [APP] >> [AN]

[hassanalizafar]

[KN] Scarcity can lead a business to specialise because it cannot produce everything with limited resources.
[AAP] For example, a farm may decide to grow wheat instead of cotton due to demand in market or specialise in growing crop.
[AN] which shows efficient use of land, focus on the most profitable option, and reduction of wasteful production. As a result, the farm concentrates on the crop that maximises returns from its scarce resources.

[Uqbah hadeed kayani]

[kn] as one firm cannot produce everything it may prefer to perfect one of its products [app] as a farmer may grow wheat instead of cotton as he cannot produce cotton and would rather produce high quality wheat to increase his market share [an] this allows him to focus on his most profitable crop allowing him to earn more revenue and generate a higher income

[abdurrehman waseem]

KN:scarcity forces businesses to focus on certain products instead of producing everything
APP:A farm is specialised in producing wheat instead of producing both wheat and cotton.
AN:By concentrating on most profitable crop , the farm uses its scarce land more efficiently

[Abdullah Mohsin]

[KN]Scarcity forces businesses to make choices about how to use their limited resources, which can lead them to specialise in producing certain goods or services.
[APP]For example, a small bakery with limited labour, equipment, and ingredients may choose to specialise in cakes rather than offering a wide variety of products. This allows the business to focus its scarce resources on one product line, improving efficiency and consistency in production. By concentrating on cakes, the bakery can also build a reputation for quality in that area, attracting loyal customers.
[AN]Specialisation can benefit the business because it allows workers to gain expertise and become more productive, reducing costs over time. It may also enable the bakery to charge higher prices if it becomes known as a specialist in cakes, improving profitability

[shamaim shakeel]

[KN] Scarcity means businesses don’t have enough resources to make everything, so they must choose what to focus on. This often leads to specialization.

[APP] For example, a small bakery with limited staff and ingredients may decide to only make bread instead of many products. This way, it can use its resources better and make good quality bread.

[AN] Specialization helps the business because workers get better at their job, which saves time and money. It can also make the bakery well known for bread, helping it earn more profit.

[Aarib Saad]

(KN)Scarcity can cause specialization as the business will be forced to produce only one type of good due to limited resources.
(APP)For instance, an agricultural business has limited land so it will only be produce one type of crop, for example wheat or rice, forcing it to pick the crop which is more efficient to grow.
(AN+)This in turn will make it so that the business will be able produce a high amount of a specific crop, making it so that it is able to fill market gaps for that crop easier and quicker than other businesses, leading to an increase in market share and sales revenue.

[Shaliza khawaja]

(KN)Scarcity is when there are unlimited wants and limited resources and specialization is when a workers concentrates on one job and makes themselves perfect at it
(APP)eg a coffee shop owner does not have enough finances for multiple workers and only has 2 employees, one is specialized in making drinks whereas the other one is specialized in handling customers,
(AN)this allows the owner to use scarce labor more productively and increase its efficiency however In the long run if the 2 employees are over worked their efficiency might fall ,causing the drinks to be off bad quality and which could harm the brand image

[Muaz Aamir]

KN: Specialization is when a business focuses on producing one type of good or service to use resources efficiently.
AP: For example, a bakery may specialize in cakes instead of making all kinds of baked goods because ingredients and staff are limited.
AN: This shows that scarcity of resources can lead businesses to focus on what they do best.
AN+: Specialization can improve quality, save time and costs, and help the business compete better in the market.

[Subhan Zafar]

{KN}Scarcity occurs because resources are limited but wants are unlimited, so businesses must make choices in how to allocate their resources.
{APP}For example, a small bakery only has a limited number of workers, ovens and raw materials like flour. Because of this scarcity, the owner cannot produce every type of baked good customers might want. The business is forced to make a choice – it may decide to specialize in bread and cakes, rather than also producing pastries or sandwiches.
{AN}workers repeat the same tasks daily, improving speed and reducing mistakes, which lowers costs.If consumer demand shifts towards pastries or sandwiches, the bakery may lose customers because it lacks product variety.

[Abdul Hadi]

KN: Specialisation happens because a business cannot produce everything with its limited resources.
APP: For example, a farm may focus only on growing cotton instead of dividing land between wheat and cotton.
AN: This allows the business to make the most efficient use of scarce land, reduce waste by concentrating on one profitable crop, and increase overall productivity.

[areeshasaber]

​​[kn] Scarcity means a business cannot produce everything it wants because resources are limited.
[app] A farm may choose to grow wheat instead of cotton.
[an] By focusing its limited land and resources on the most profitable crop, the farm specializes, making the best use of scarce resources to maximize output and profit and increases efficiency.

[Abdullah Altaf]

[KN] Because of resource constraints, scarcity forces businesses to focus on specific products.
[APP] A farming business, for instance, might only be able to cultivate one type of crop due to limited farmland, concentrating on that single crop hence having less variety of crops.
[AN] This might cause reduced sales and profits, which could result in financial issues.

[Dania Farooq]

(KN) Scarcity occurs when resources are limited but wants are unlimited.
(APP) For eg, a small bakery with limited workers and equipment maybe specialized in serving coffee rather than offering cakes or such baked items so it uses more coffee machines, beans and staff time more efficiently to maximize output and quality.
(AN) Which leads to Specialization helping bus use its scarce resources more efficiently by focusing on fewer products. It also allows workers to become skilled at one task, nd so improves quality and output.

[sarah_naeem]

(KN) Scarcity means there are limited resources available but unlimited wants so businesses have to make choices.
(APP) For example, a bakery with fewer employees and ovens may only focus on making breads rather than offering more options like cakes and pastries.
(AN) By specializing, the business resources are being used more efficiently which may increase productivity and may also reduce waste.