Final answer:
The example of small-scale techniques among the provided options is C) Customized production. It is more labor-intensive and less automated, making it suitable for small-scale operations, contrasting larger-scale techniques that aim for economies of scale.
Step-by-step explanation:
The student has asked for an example of small-scale techniques. Out of the options provided (A) Mass production, B) Batch processing, C) Customized production, and D) Continuous processing), the correct answer is C) Customized production. This is because customized production often involves making unique or tailored products for individual customers, which typically involves less automation and more hands-on labor. It is the opposite of large-scale techniques like mass or continuous production, aiming for economies of scale.
In a business context, firms consider different production technologies based on labor and machinery costs. Production technology 1 uses the most labor and least machinery, making it a more labor-intensive approach often seen in small-scale operations. As labor costs rise, firms may switch to using more machinery, as seen in production technology 3, to reduce total costs. Therefore, as the student seems to be examining production scales, economies of scale become relevant since they explain how costs per unit decrease as production scales up.