2. (10 pts.) A local brewery has to choose one of the four possible combinations of inputs listed below. The two inputs are workers and machines. If they rent expensive machines, then they can hire fewer workers to produce the same output. The input combinations are: Method 1 Method 2 20 Workers 50 Workers 100 Workers 10 Workers 10 Machines 2 Machines O Machines Method 3 Method 4 12 Machines Assume that hiring a worker costs $10 and renting each machine costs $100. Which method should they use and why?

Q&A Education