Concept:The question “how to produce” is about choosing the best method of production among available alternatives.
Explanation:Every society must decide the technique to use in producing goods and services.
This decision is guided by the desire to minimise cost and maximise efficiency.
Producers therefore compare different combinations of inputs, such as labour and capital.
The method that gives the same output at the lowest cost is preferred.
Thus, the problem of “how to produce” is solved by adopting the least cost method of production.
Answer:B. adopting the least cost method of production.