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

An entrepreneur is encouraged to adopt division of labor in production because it leads to increased output and lower cost of production. Division of labor involves breaking down the production process into small specialized tasks that are carried out by different workers. Each worker becomes an expert in their specific task, which leads to increased efficiency and productivity. This, in turn, reduces the cost of production as the entrepreneur can produce more goods using the same amount of resources. Additionally, the increased output resulting from division of labor allows the entrepreneur to sell more goods, which can lead to higher profits.