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?

Method 1: (20 workers @$10.00 = $200) + (10 machines @$100 = $1,000) = $1,200 Method 2: (50 workers @$10.00 = $500) + (2 machines @ $100 = $200) = $700 Method 3: (100 workers @ $10.00 = $1,000) + (0 machines @ $100 = $100) = $1,000 Method 4: (10 workers @ $10.00 = 100) + (12 machines @ $100 = $1,200) = $1,300