Final answer:
McCarthy Construction is attempting to bring in 1) new technology to improve efficiency and reduce costs, similar to the hypothetical company Technotron, which increased output and quality of goods while lowering labor costs with new technology.
Step-by-step explanation:
The company in question, McCarthy Construction, is attempting to incorporate 1)new technology to improve its business operations.
Taking into consideration the example of the fictional company Technotron, we can deduce that by inventing new scientific technology, a firm can increase its output and the quality of its goods while potentially reducing the number of workers needed and lowering costs.
This concept aligns with the information provided which suggests that a firm would choose production technology with the lowest total cost, which often involves new technology that enhances efficiency and productivity.
When the cost of machines is lower, companies tend to opt for production technology that uses more machines and less labor.
Conversely, when machine costs increase, firms may shift towards technology that is less capital intensive and involves more labor.
Therefore, the choice between technology 3 or technology 2 is crucial, depending on the relative costs and efficiency gains from the technology.