Final answer:
Operating four fudge machines simultaneously would likely lead to increased production efficiency by maximizing capital use and reducing labor costs, provided the operational processes are well-managed.
Step-by-step explanation:
When considering the operation of multiple fudge machines, the most likely outcome is increased production efficiency. This is under the assumption that each machine operates independently without interference and with proper scheduling of the workflow. By utilizing all four fudge machines simultaneously, the firm maximizes the use of its capital, which is in line with production technology choices that favor machinery over labor, especially when machine hours are cheaper relative to labor.
It is important to note that the choice to operate more machinery with less labor is, in fact, driven by the total cost implications of such a move. This strategy reflects the firm's shift to production technology that lowers total cost. In this case, if technology 3, which uses the most machinery, has the lowest total cost, then, operationally, it supports the use of all four machines. However, if the cost of machines increases, as indicated in the case for choosing production technology 2, the firm may reconsider its labor-to-capital ratio to balance cost-efficiency.