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WAEC Economics 2016 Question 18

Question 18

Theory of Production

An entrepreneur is encouraged to adopt division of labour in production because it

  1. A.provides more employment opportunities.
  2. B.leads to increased output and lower cost of production.
  3. C.brings about equal cost and employment opportunities.
  4. D.leads to increased cost of production and lower output.
Show the answer and explanation

Answer: B (leads to increased output and lower cost of production.)

Explanation

Specialisation raises output per worker and lowers cost per unit.