Final answer:
The correct answer is 4) Bray's Corp., which manufactures pharmaceuticals, is the company most likely to use a hybrid-costing system due to their combination of batch processing and customization.
Step-by-step explanation:
The company most likely to use a hybrid-costing system amongst the options provided is Bray's Corp., which manufactures pharmaceuticals. The reason Bray's Corp. would use a hybrid-costing system is that it likely involves both aspects of job costing and process costing. Pharmaceuticals typically require batch processing for chemical mixing (similar to process costing), but may also require customization or different packaging (similar to job costing).
Regarding the provided references on production technology choices and total cost implications, the production technology that has the lowest total cost would generally be preferred by firms. If machine hours become cheaper, as implied, there would typically be a shift towards utilizing more machinery and less labor which relates to production technology 3. However, if the cost of machines increases, this would lead to a reliance on less capital and more labor, aligning with production technology 2.
The economic commentary provided on the situation in the United States during the 1970s is reflective of the market conditions where not all firms can be successful in the long run due to insufficient demand to allow all firms to operate efficiently at a point where they can minimize their average costs.