Adam Smith Observed That the Division of Labour Is Limited

question 12

Multiple Choice

Adam Smith observed that the division of labour is limited by the size of the market.Which one of the following statements is not consistent with this observation?

• A)A limited-sized market can prevent firms from achieving economic capacity.
• B)A limited-sized market can prevent firms from achieving their minimum efficient scale.
• C)A limited-sized market can prevent firms from achieving minimum short-run average cost.
• D)A limited-sized market can prevent firms from achieving minimum long-run average cost.
• E)A limited-sized market can prevent firms from achieving excess capacity.

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Definitions:

Sun-exposed Slope

Describes the side of a hill or landform that receives direct sunlight, influencing its climate and vegetation.

Habitat

The natural environment or place where an organism, population, or species lives.

Metapopulation

A population that is divided into several local populations among which individuals occasionally disperse.

Disperse

The action or process by which something spreads or is spread over a wide area.