An entrepreneur is encouraged to adopt division of labour in production because it

Answer Details

Division of labour is the practice of breaking a production process into separate, specialised tasks and assigning each task to a different worker. An entrepreneur adopts division of labour primarily because it leads to increased output and lower cost of production.

When workers specialise in one task, they become faster and more skilled at it through repetition. This increased efficiency raises total output. At the same time, because each worker is more productive, the cost per unit of output falls. Additional benefits include reduced time lost in switching between tasks and the ability to use specialised tools and machinery suited to each step of production.

The option stating it leads to increased cost and lower output describes the exact opposite of what division of labour achieves. While division of labour does not directly aim to provide more employment opportunities (in fact, increased efficiency can sometimes reduce the number of workers needed), the entrepreneur's motivation centres on productivity gains and cost reduction, not job creation. The option about equal cost and employment opportunities does not reflect any recognised outcome of specialisation.