What advantage does division of labor provide to larger firms?

The advantage of division of labor for larger firms primarily lies in its ability to increase productivity through specialization. When tasks are divided among workers, each individual can focus on a specific part of the production process that aligns with their skills or expertise. This means that workers can become highly skilled and efficient in their designated tasks, leading to quicker production times and improved quality of output.

In larger firms, where production often involves complex processes, specialized labor allows for a streamlined approach to manufacturing or service delivery. Workers adapt to their tasks and, over time, become more adept at performing them, minimizing time spent on learning new skills associated with a wider range of tasks. This overall efficiency maximizes the output of the firm.

Other options highlight complications or disadvantages that would not typically be associated with the benefits gained from division of labor. For instance, increased management oversight, while sometimes a reality in larger firms, does not negate the fundamental productivity gains achieved through specialization.