Switches automatically reduce collision domains by only transmitting data on the physical ports that are needed based on MAC addresses (as opposed to a Hub which broadcasts all data to all ports). When used with VLANs switches also reduce broadcast domains.
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How does a switch reduce collision domains compared to a hub?
What are the roles of the devices listed in the question, and why are they not correct answers?
What are VLANs and how do they work with switches?