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1.4 Production, costs and revenue

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Question 87

A software development firm transitions from a craft-based structure, where each developer builds entire applications independently, to a system of high division of labour, where individual developers specialise exclusively in one phase (either database design, frontend coding, or user-testing).

Which of the following is the most likely consequence of this change?

A

A reduction in the management and coordination costs needed to complete a project.

B

An increase in the occupational mobility of the developers in the external labour market.

C

A rise in the firm's exposure to production bottlenecks caused by staff absence.

D

A decrease in the workers' reliance on exchange to satisfy their consumption needs.

Markscheme

1.4 Production, costs and revenue Questions

  1. A Level
  2. /Economics
  3. /1.4 Production, costs and revenue

156 exam-style questions on AQA A Level Economics 1.4 Production, costs and revenue, covering 1.4.1 Production and productivity, 1.4.2 Specialisation, division of labour and exchange, 1.4.3 The law of diminishing returns and returns to scale (A-level only), 1.4.4 Costs of production, 1.4.5 Economies and diseconomies of scale, 1.4.6 Marginal, average and total revenue, 1.4.7 Profit, and 1.4.8 Technological change (A-level only). Each one has a worked solution and a mark scheme showing where the marks go.

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