Nisha wants to start her own business in food industry and has thought of building a brand similar to "Lays". For that she is in dilemma whether she should hire people or use machines for the production of the same. Which of the following economic problem is being discussed in the given situation? |
For whom to produce What to produce How to produce None of the above |
How to produce |
The correct answer is Option 3: How to produce The economic problem of "How to produce" consists of problem of choice of techniques of production. As, Nisha is confused whether to go for labour intensive technique or capital intensive technique, we can conclude that the economic problem of "How to produce" is being referred in the question. |