A commercial bakery operating in a small community decides against dividing its production process into specialized sub-tasks because the local population buys only a small quantity of bread daily. Which factor is primarily responsible for limiting the practice of division of labor in this bakery?
- The extent of the marketCevap
- BThe law of diminishing returns
- CThe localization of industries
- DThe high cost of fixed inputs
Cevap
The extent of the market primarily limits the practice of division of labor.
The extent of the market determines the volume of goods a firm can sell. If demand is limited, breaking down production into highly specialized repetitive tasks leads to underutilization of workers and operational inefficiency.
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Anahtar Kavram
Division of labor is limited by the extent of the market.
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