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A Factory That Manually Produces Pens Employs Ten Workers

Question 91

Multiple Choice

A factory that manually produces pens employs ten workers.The total output when one worker produces all the parts of a pen himself is 100 pens.When different workers focus on producing different parts of the pen,the output increases to 400 pens.In other words,_____ increases the returns from the same level of inputs.


A) increasing the capital-labor ratio/irs
B) product diversification
C) a piece rate wage system
D) specialization of labor

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