WAEC Economics 1998 Question 10

Question 10

Theory of Production

The introduction of division of labour in a firm will lead to

  1. A.a fall in output
  2. B.a decline in the efficiency of labour
  3. C.an increase output
  4. D.the separation of ownership from management
  5. E.an increase in unit cost
Show the answer and explanation

Answer: C (an increase output)

Explanation

Specialisation makes workers faster and more skilled, so output increases.