Final answer:
The combination of equipment and skills used in production and distribution is known as production technology, which includes all methods for combining inputs to create outputs, with the goal of minimizing costs and maximizing profits.
Step-by-step explanation:
The combination of equipment and skills that a manager uses in the production and distribution of goods is known as production technology. In business and economics, technology refers to all alternative methods used for combining inputs to produce outputs.
It encompasses a wide range of factors, from the physical capital used in production to the levels of expertise required to operate machinery or conduct a process efficiently.
Businesses are constantly in pursuit of the most cost-effective production technology to ensure lower costs and higher profits, as long as total revenues remain unchanged.
This often involves making trade-offs between the amounts of labor and physical capital used, such as choosing between many small machines that each need a worker or a larger machine that operates with fewer workers.