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1.4 Production, costs and revenue

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Question 43

A manufacturing firm producing components for electric vehicles transitions from a system where individual technicians assemble entire units to a specialized assembly line.

Which of the following is the most likely consequence of implementing this division of labour?

An increase in workforce flexibility, as workers become highly proficient in all aspects of the assembly process.

A reduction in average production costs, as workers gain greater speed and dexterity through the repetition of a narrow range of tasks.

A decrease in the firm's reliance on exchange, as the division of labour enables complete self-sufficiency.

A reduction in productivity, because workers spend more time transitioning between different specialized tools.

1.4 Production, costs and revenue Questions

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