One of the factors limiting the effectiveness of division of labour in the production process is the

  • A Prevailing wage rate
  • B Level of technology
  • C Unemployment rate
  • D Population size

The correct answer is B. Level of technology

FACTORS DISCOURAGING OR LIMITING DIVISION OF LABOUR

1. The nature of goods and services : Some goods and services are suitable for large scale production while others cannot produced on large scale.

2. Increase cost of production : If cost of production is increasing as a result of high cost of inputs, division of labour cannot be possible.

3. Managerial ability : Managerial ability must be duplicated as the firm expands .This causes difficulties to management in organizing and coordinating the factors of production employed.

4. The size of the market :

5. Low development of distribution.

6. Government policies.

7. Where standardisation is difficult to achieve.

8. The indivisibility of work into smaller process.

9. Technological advancement

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