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Main principles that each maison shares and follows when it comes to production?

A) Standardization

B) Customization

C) Automation

D) Collaboration

1 Answer

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Final answer:

In the context of production, standardization is a key principle, leading to consistent and efficient production of identical products. When machine costs increase, firms may shift towards more labor-intensive methods to maintain a lower total cost. This balance is vital in production planning for financial optimization.

Step-by-step explanation:

Regarding the main principles that each production maison follows, there's a tendency towards standardization in the context provided. This is evident as the design lead to a mechanized work environment with an emphasis on producing identical products across various locations. The goal of standardization is to ensure consistency, reduce costs, and improve efficiency.

When the cost of machines increases, the firm should choose production technology 2, which has the lowest total cost, implying a shift toward more labor-intensive methods and less reliance on capital, like costly machinery. This decision-making process in production planning showcases the necessity to adapt to changes in cost structures and to consider the balance between labor and automation for optimal financial performance.

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