How can technology impact productivity in a business?

Technology can significantly influence productivity in a business primarily by enhancing efficiency and reducing costs. When businesses incorporate advanced technologies—such as automation, software solutions, and data analytics—the processes become more streamlined. This leads to increased output without a proportional increase in input, meaning that tasks can be completed faster and with fewer errors.

For example, automation in manufacturing allows for faster assembly lines, while software tools can optimize scheduling and supply chain logistics. This improvement in efficiency not only boosts productivity but also often reduces operational costs, as less time and fewer resources are wasted. Moreover, technology enables better tracking and analysis of business operations, allowing companies to identify further areas for improvement and cost-saving.

While other options mention possible effects of technology, they do not align with the primary benefits technology typically brings to a business setting. Labor costs can potentially increase in certain scenarios, production capabilities might become limited due to outdated systems, and increased regulation is not a direct effect of technological advancement. Instead, the correct answer highlights how technology fundamentally transforms business operations for the better.