Division of Labor in Production

Steps:

• Identify the concept: Dividing production into specialized tasks assigned to different workers is the division of labor.
• Analyze output: Specialization increases efficiency and skill, raising output per worker, so it does not lower output.
• Analyze tasks: Workers focus on narrow, repeated processes, making tasks more repetitive.
• Analyze costs: Higher productivity and efficiency reduce unit costs.

Why A is correct:

• Division of labor, as described by Adam Smith's theory, boosts productivity (higher output), creates repetitive specialization, and lowers costs through economies of scale.

Why the others are wrong:

• B: Incorrectly denies more repetitive tasks, which result from narrow specialization.
• C: Wrongly claims lower output per worker, ignoring productivity gains from skill development.
• D: Falsely states lower output per worker, as specialization increases total and per-worker output.

Final answer: A