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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
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: 20 workers 10 machines Method 2: 50 workers 2 machines Method 3: 100 workers 0 machines Method 4: 10 workers 12 machines Assume that hiring a worker costs $10 and renting each machine costs $100. Which method should they use and why? Utilize the following concepts and clues to answer the above question: Mirrors one of the Quizzes. Regards to Production, Fixed cost, variable costs. ****Look at Isocost, Isoquant analysis**** chapter, should be doing mathematical way but no formula just a process. instead of utility maximization, there is some labor and some capital. Apply point of curves. Assume All methods get the job done, so which method should you choose
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