Which of the following statements is true about the advantages gained through the division of labour?

Question

Quizplus · Accepted Answer

The division of labour results in both the marginal and average product of labour increasing. This is because when workers specialize in specific tasks, they become more skilled at those tasks and therefore more efficient, leading to an increase in both marginal and average productivity. Option A is incorrect because the division of labour affects both marginal and average productivity. Option B is incorrect because the division of labour was first mentioned by Adam Smith, not David Ricardo. Option C is incorrect because the division of labour has widespread application in various industries.

Which of the Following Statements Is True About the Advantages