Division of Labor

Division of labor is in stark contrast to autarky. Under autarky every entrepreneur combines land and/or factors of production in order to produce goods for his own consumption only, strict autarky knows no market. Under division of labor every entrepreneur combines land and/or factors of production in order to exchange the goods produced against other goods, usually money, on the market with other humans. Division of labor is an immediate manifestation of the law of comparative advantage.

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