Concept:Division of labour works best when production can be broken into specialised tasks using suitable tools and machinery.
Explanation:The level of technology determines how easily work can be divided into separate, smaller processes.
A low level of technology limits the use of machines and makes specialisation ineffective.
The nature of goods, market size, and managerial ability also affect division of labour.
The prevailing wage rate influences production cost, not the divisibility of work.
Population size and unemployment rate affect the supply of labour, but not the effectiveness of task specialisation.
Therefore, among the options, the level of technology is the key factor limiting division of labour.
Answer:B. Level of technology.