When deciding which production method to use among several alternatives, the key economic question being addressed is: "How to produce?" This question focuses on choosing the most efficient, cost-effective, sustainable, or suitable method of production using available resources and technology. It involves weighing trade-offs related to costs, resource use, environmental impact, and other factors. The three fundamental economic questions that societies or producers face are generally:
- What to produce? (which goods and services to prioritize)
- How to produce? (which production methods and resources to use)
- For whom to produce? (how goods and services are distributed among society)
In this context, the decision on the production method specifically relates to the question of "How to produce?" which reflects concerns about efficiency, technology, resource availability, opportunity cost, sustainability, and social objectives in production decisions.