How can specialization change what two workshops produce?

Specialization can change total production because different producers give up different alternatives when making a good. This sacrifice is called opportunity cost. It is measured in the alternative output forgone, not only in money or the number of hours spent.

In the fictional workshops, Ana needs two hours per basket and four per stool. Bo needs four hours per basket and two per stool. For Ana, making one basket uses time that could make half a stool. For Bo, one basket costs two stools. Ana therefore has the lower opportunity cost of baskets, while Bo has the lower opportunity cost of stools.

Each workshop has eight hours. If each divides the day equally between the goods, Ana makes two baskets and one stool, while Bo makes one basket and two stools. Together they produce three baskets and three stools. If Ana makes only baskets and Bo only stools, the same combined working time yields four of each.

Specialization changes what is produced before exchange changes who holds it. A voluntary exchange can distribute some baskets to Bo and stools to Ana without changing the combined output. Whether that distribution benefits both depends on what they want and the terms they accept.

The comparison holds productivity fixed and leaves out travel, waste and adjustment costs. It demonstrates a possible gain relative to one split-day starting point, not that specialization or trade always benefits everyone.