Final answer:
Transportation, logistics, and energy management largely contribute to manufacturing facilities' cost overhead. Cheaper machine hours can influence a firm's production technology choice, optimizing capital over labor. Location choice can mitigate transport costs and accessibility issues.The correct option is: 2) Energy and utilities
Step-by-step explanation:
When examining the highest contributors to cost overhead in manufacturing facilities, we would generally consider factors such as transportation and logistics, energy and utilities, plant control flow operation, and energy management and resource optimization.
However, context is key. For instance, if a firm finds that machine hours are relatively cheaper, they might lean towards a production technology that utilizes more machines and less labor, aiming to minimize the total cost. From the information provided, it seems that production technology 2 or 3 would be a choice, contingent on whether machine costs increased relative to labor costs or not.
Transport costs can quickly escalate when dealing with congested streets and freeways, prompting firms to seek locations that enable easy access to transportation networks. Additionally, the cost of energy can be significant, as it's a continuous expense required to keep factories operational. This emphasizes the importance of energy management. Both factors play crucial roles in determining overall cost overhead and can influence a firm's choice regarding production technology and its location decisions.The correct option is: 2) Energy and utilities