Theory question 104
Theory of ProductionSection B
(a) Highlight the factors which encourage entrepreneurs to adopt division of labour in production
(b) What factors are capable of limiting the practice of division of labour?
Show the model answer
(a) Factors encouraging division of labour: increased output and productivity; saving of time (no moving between tasks); skill improves through repetition; use of machines; workers placed where their talents suit; lower cost per unit; makes large-scale production possible; easier training of workers.
(b) Limiting factors: size of the market (main limit); nature of the product (custom-made goods, art); scarce capital; small scale of production; shortage of skilled labour; nature of the job (agriculture is seasonal); poor transport and communication; low level of technology.
Market size is the key limit.