Final answer:
Low profitability in a job can stem from wasting direct materials, inefficient manufacturing labor, and underpricing the job. Cost-effective production technology selection is essential, and as wages rise, the preference might shift towards more automation to lower costs. The overall efficiency in manufacturing holds significant social and economic implications. Options D.
Step-by-step explanation:
A job that shows low profitability may be the result of wasting direct materials, inefficient direct manufacturing labor, or underpricing the job.
All of these factors contribute to lower profit margins. Choosing the right production technology is crucial for cost management. For instance, if a firm's cost calculations show that wages are low, technology that leverages direct labor might be more cost-effective.
As wages increase, there may be a point where technology that relies more on machines becomes cheaper. In the examples given, using production technology 1 is most cost-effective when wages are $40 and machine costs are $80.
When wages rise to $55, production technology 2 becomes the low-cost option. If wages continue to rise to $90, while the cost of machines remains unchanged, it makes sense for the firm to switch to production technology 3 as it becomes the low-cost form of production.
This is because, with cheaper machine hours, a shift toward more machinery utilization over labor can reduce costs further. Manufacturing efficiency not only affects the profitability of specific jobs but also has broader societal impacts.
Manufacturing jobs can provide a high quality of life with adequate wages, but the loss of such jobs due to various factors can have significant economic consequences.
Hence, the right answer is option D. All of these answers are correct.