Final answer:
An operation that has nearly all of its drink's production performed by a machine is using highly automated equipment. Companies aim for the production technology with the lowest total cost, which could be production technology 3 when machine hours are cheaper, leading to more automation.
Step-by-step explanation:
When nearly all of a drink's production is performed by a machine, the operation is using a type of drink production equipment that is heavily automated. In a business setting where production technology choices are critical, a company would select the option that has the lowest total cost to maximize efficiency and profitability. This often occurs when there is a decrease in the cost of machine hours, leading to a shift towards using more machines and less labor.
The change to automation and the use of more machines is a response to the economic principle of minimizing costs. In an instance where machines become cheaper relative to labor, a rational firm would invest in production technology 3, as it represents the most cost-effective method under those circumstances. Conversely, if the cost of machines were to increase, making them more expensive relative to labor, the firm would likely shift towards production technology 2, which would utilize less capital (machines) and more human labor. Such a decision is indicative of a broader trend in many industries towards mechanization and standardization, often referred to as an assembly-line approach, where the goal is to produce identical products efficiently in every location.