Question

What is a production technology?

Short answer

A production technology is a mix of capital and labor that is used to make a product.

Step-by-step solution

Step 1. Introduction

Production technology is defined as the technology utilized to manufacture a product.

As a result, it is viewed as a system for scheduling products production and controlling stocks in order to reduce costs.

Businesses in the manufacturing industry use it to discover production constraints.

Step 2. Explanation

Production technology is defined as the technology utilized to manufacture a product.

As a result, it is viewed as a system for scheduling products production and controlling stocks in order to reduce costs.

Businesses in the manufacturing industry use it to discover production constraints.

A production technology is a mix of capital and labor that is used to make a product. SUPPLY DETERMINANT PRODUCTION TECHNOLOGY is defined as the suppliers' knowledge and information about production (that is, the producing techniques or the way the inputs are linked together to form the outputs), which are assumed to be constant while constructing a supply curve.

A drop in technology means that producers can sell fewer units of a product.

This is demonstrated with the help of the diagram below: