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If production technology increases output faster than the economy can asbord the product, you end up with surplus inventory and unfavorable (for the company) supply/demand situations. Increasing your capacity to produce results in producing at less than capacity as market demand pulls product out of your factory at a slower rate than you can manufacture it, likely causing you to operate less efficiently than you could at your optimum levels.=)

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Q: What are negative effects of production technology?
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