A factory that manually produces pens employs ten workers.The total output when one worker produces all the parts of a pen himself is 100 pens.When different workers focus on producing different parts of the pen,the output increases to 400 pens.In other words,_____ increases the returns from the same level of inputs.
A)increasing the capital-labor ratio/irs
B)product diversification
C)a piece rate wage system
D)specialization of labor

Question

Quizplus · Accepted Answer

Specialization of labor is the best choice as it allows workers to focus on producing different parts of the pen, leading to increased efficiency and productivity. This results in a higher output of 400 pens, compared to the total output of 100 pens when one worker produces all parts of a pen.

A Factory That Manually Produces Pens Employs Ten Workers