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Difficulty: EasyDivision of Labor and Specialization

A book publishing enterprise in Ibadan breaks down its production workflow into specialized tasks such as editing, typesetting, proofreading, and cover designing. Which of the following factors serves as the primary limitation to the extent of division of labor in this firm?

  1. The size and extent of the market for published booksAnswer
  2. B
    The geographical concentration of printing firms in the region
  3. C
    The immediate onset of the law of diminishing returns
  4. D
    The proportion of fixed costs to variable costs in short-run production

Answer

The size and extent of the market for published books
Division of labor depends directly on the volume of demand. When the extent of the market is large, a firm can produce in large quantities, making complex division of labor economically viable.

Step-by-Step Solution

1
Identify the economic principle being evaluated in the scenario
The firm is applying division of labor to its publishing operations.
Dividing work into editing, typesetting, proofreading, and cover design assigns specialized duties to individual workers.
2
Determine the primary limiting factor for task division
Market demand (extent of the market) determines whether high volume specialization is feasible.
If the demand for books is low, specializing workers into narrow roles leads to idle time and higher average costs, limiting how far division of labor can be implemented.

Key Concept

Extent of the Market as a Limitation to Division of Labor
Estimated Time:45s
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Topics

Division of Labor and Specialization

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