In order to focus on its area of core competency,a firm relies on _____

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The division of labor refers to a process of breaking down a production process into separate tasks that can be performed by specialized individuals or machines. This allows the firm to focus on its core competency, which is the task it performs most efficiently. The law of comparative advantage states that a firm should specialize in producing the goods or services it can produce most efficiently relative to other firms, based on differences in factors such as technology, labor costs, and natural resources. By relying on the division of labor and the law of comparative advantage, the firm can focus on its core competency and increase its efficiency and competitiveness.

In Order to Focus on Its Area of Core Competency,a