Managerial Economicsintermediate
A poultry firm compares manual egg collection with an automated system. Which managerial production choice is it evaluating?
Answer
Technology and labor-capital combination
Explanation
### Why this is right
Manual and automated systems use different technologies and may combine labor and capital differently. Evaluating them is a production decision about how to make the product.
### The concept
Managers consider the costs, worker availability and adaptability, production capacity, and demand associated with a method. Automation may change labor needs, but it does not guarantee a proportionate increase in output.
### The other options
- **B. A shift in consumer tastes**: This concerns demand, not the firm's production method.
- **C. A change in market equilibrium caused by demand alone**: The scenario compares technologies and does not specify a market demand shift.
- **D. A demographic age distribution**: This describes population characteristics, not production technology.
### Remember
A choice between manual and automated production is a technology and factor-combination decision.
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