Answer to Question #118552 in Microeconomics for R.K.brar

Question #118552

Which of the following statements is true about the advantages gained through the division of labour?
A. It causes the marginal product of labour to increase, but it has no effect on the average product of labour.
B. It was first thought of by David Ricardo in his example of a hat factory.
C. It is an idea that has little application in the real world.
D. Its application results in both the marginal and average product of labour increasing.

Expert's answer

D. Its application results in both the marginal and average product of labour increasing.