Question

Peter was hired as an external consultant to review the streamlining of production processes at a company. In his final report, he suggested that the
company should use specialization of labor. What would be the benefit of Peter's suggestion?

A.a decrease in the marginal cost of production
B.an increase in productivity due to segregation of duties
C.a decrease in the fixed cost of production
D.a decrease in wages paid to workers

Answer 1

B is the correct answer because specialization of labor will result in higher productivity, which means each worker gives higher output each hour