Final answer:
The cost of technology for reviewed alerts varies and is based on production levels and costs involved, such as labor and machine costs. Economies of scale play a significant role in reducing the average cost of technology as production output increases.
Step-by-step explanation:
The cost of technology, particularly in the case of reviewed alerts, can vary depending on several factors, including the scale of production. The costs presented show a range for different technologies, assuming labor is calculated at $55 per unit for technologies 1 and 2, and a different rate for technology 3. For instance, cost of technology 1 is calculated as 10 units × $55, totaling $550. Similarly, the cost of technology 2 is 7 units × $55, amounting to $385. However, if we consider different costs, such as in the case where workers are $55 and machines are $80, the total cost would differ.
Moreover, the concept of economies of scale is illustrated in Figure 7.9, where the average cost of production decreases as the output quantity increases. For example, a small-sized factory with an output level of 1,000 alarm clocks has an average production cost of $12 per alarm clock, while a large factory with an output of 5,000 alarm clocks reduces the average production cost to $4 per alarm clock. This demonstrates how larger production volumes can significantly reduce the cost of technology.
In summary, the total cost will vary depending on the quantity of technology produced, the cost of labor, the cost of machines, and the scale of production. Hence, it is not possible to provide a single figure for the average cost of technology without more specific context about the production levels and costs involved.