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O-LevelCommerceProduction7100/12 · May/June 2025 · Q21 Mark

A business is introducing greater specialisation in the production of chocolate. How would its workers benefit from greater specialisation in the production process?

ALower costs will mean lower prices leading to a higher standard of living.
BProductivity will rise enabling the business to pay higher wages.
CThe business will benefit from economies of scale which will reduce its average costs.
DThere will be a need for more managers to take charge of different stages of production.

✓ Correct answer

B: Productivity will rise enabling the business to pay higher wages.

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About this question

Topic
Production, O-Level Commerce (syllabus 7100). Multiple choice, 1 mark.
Source
O-Level Commerce, May/June 2025 Paper 1 Variant 2, question 2.

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