Adam Smith's fundamental insight was that firms were more productive when:
A)labour was specialized.
B)hamburgers are grilled rather than broiled.
C)organized as monopolies.
D)each worker does all parts of a project.

Question

Quizplus · Accepted Answer

Adam Smith observed that when workers specialized in one specific task, they became more skilled and efficient in that task, which increased productivity overall. This is known as the division of labor and is a key concept in Smith's book, The Wealth of Nations.

Adam Smith's Fundamental Insight Was That Firms Were More Productive