Final answer:
SmartTech's increased productivity with the same number of employees is most likely attributed to advancements in technology, leading to more efficient production methods and falling average total costs in their industry.
Step-by-step explanation:
SmartTech is experiencing growth in productivity likely due to advancements in technology that have led to more efficient production methods. This scenario is similar to a hypothetical company, Technotron, which developed new scientific technology that increases output with fewer workers. Such improvements often lead to falling average total costs, a characteristic of a decreasing cost market. Additionally, during the initial phase of a recession, companies may retain workers to avoid the costs associated with rehiring, but as the economy improves, they leverage technological advancements and skill enhancements to increase productivity without proportionally increasing the workforce.
The pattern of retaining workers during a downturn and cautiously realigning workforce size post-recession, while adopting new methods of production, shows the impact of technologies on maintaining or improving productivity with lower labor inputs. Countries with robust institutions supporting technological growth witness a compounding effect that makes subsequent advances even more accessible and cost-effective. Therefore, SmartTech's ability to produce more with less people is most likely attributed to technological advancements and efficiency gains.