When the division of labor is carried past the point of maximum efficiency, the result is?

• A. Underutilization
• B. Overproduction
• C. Inefficiency
• D. Overspecialization

Answer: (D)

When workers specialize, productivity rises because each person becomes skilled at a specific task and time spent switching tasks is reduced. But there’s an optimal point: beyond that, pushing division of labor too far brings diminishing returns. Tasks become so narrow that the process loses flexibility, workers may become bored or fatigued, and the operation becomes highly dependent on a single step. If that step slows or if demand shifts, the whole production can stall and overall efficiency drops. This situation is overspecialization—too much division of labor leading to decreased efficiency.