Which of the following best illustrates deciding how to produce a specific product?

• A. Selecting which market to sell the finished smartphones in
• B. Deciding how many smartphones to produce given limited resources
• C. Choosing between using labor-intensive or capital-intensive methods to manufacture smartphones
• D. Determining whether to produce smartphones or tablets

Answer: (C)

Verified step by step guidance

1. Understand the concept of 'deciding how to produce' in microeconomics, which involves choosing the production method or technique to create a specific product.
2. Recognize that this decision focuses on the inputs and processes used in production, such as labor-intensive versus capital-intensive methods.
3. Analyze each option to see if it relates to the production method: selecting a market is about selling, deciding quantity is about output level, and choosing between products is about product mix, not production method.
4. Identify that 'choosing between using labor-intensive or capital-intensive methods to manufacture smartphones' directly addresses the production technique, which is the essence of deciding how to produce.
5. Conclude that the best illustration of deciding how to produce a specific product is the choice of production method, as it determines the combination of inputs and technology used.