Final answer:
The manufacturing manager should choose either production technology 2 or 3, based on the relative cost of machines and labor, with the goal of selecting the option with the lowest total cost.
Step-by-step explanation:
When examining the scenario of a manufacturing line with two single-machine workstations and deterministic parameters, the manufacturing manager is faced with a decision regarding the choice of production technology. If the cost of machines has increased from what it was previously, the manager should lean towards production technology 2 because it represents the option with the lowest total cost while also favoring more labor-intensive processes due to higher capital costs. Conversely, if the cost for machine hours has decreased, the manager would typically select production technology 3, again, since it has the lowest total cost and allows for a shift towards more machinery and less labor.
This decision-making process reflects real-world economic shifts. For example, like the situation in the United States in the 1970s, an environment with only enough demand for 2.5 firms to efficiently operate leads to an expectation that in the long run, one firm may fail and another may struggle due to inability to achieve economies of scale.