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?
- The size and extent of the market for published booksCevap
- BThe geographical concentration of printing firms in the region
- CThe immediate onset of the law of diminishing returns
- DThe proportion of fixed costs to variable costs in short-run production
Cevap
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.
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Anahtar Kavram
Extent of the Market as a Limitation to Division of Labor
Tahmini Süre:45s