What are the two main reasons for concentrated production?

Concentrated production is primarily driven by the economy of specialization and repetition, which enhances efficiency and productivity. When a production process is concentrated, it allows workers and machines to specialize in specific tasks. This specialization means that each worker or machine can become highly skilled and efficient in their designated role, leading to faster production times and lower costs per unit.

Furthermore, repetition in production processes helps firms optimize their operations. As tasks are repeated, systems and workflows can be refined, which minimizes errors and waste. This synergy between specialization and repetition results in significant increases in output, allowing businesses to benefit from scale economies. By concentrating production, companies can produce goods at a lower cost, ultimately benefiting both the firm and consumers by offering goods at more competitive prices.

In summary, the combination of specialization and the advantages gained from repetitive processes stands as the foundational reasoning behind the concept of concentrated production.