Final answer:
Cutting the amount of labor required to make a product, through the substitution of labor with machinery, is an example of increased efficiency in manufacturing. It typically results in higher labor productivity and production efficiency.
Step-by-step explanation:
Which of the following might be an example of increased efficiency in manufacturing? Cutting the amount of labor required to make the product is an example of increased efficiency in manufacturing. When a firm chooses to substitute labor with machinery, this generally leads to higher labor productivity and can be a result of increased automation or more efficient production techniques.
Firms may opt for different production technologies based on relative costs and efficiency. For instance, if the cost of labor increases, a firm is likely to adopt a technology that uses less labor and more machinery, as outlined in Table 7.14. This substitution can lead to a reduced total cost of production and can be considered a shift towards efficiency when the machinery enhances the production capacity. Furthermore, when faced with higher wages due to, for example, union demands, a firm may increase its efficiency by opting for methods that rely more on physical capital and less on labor, thus increasing labor productivity as well.