A

The correct answer is deciding who needs the goods and services that are about to be produced.

Explanation:

“For whom should we produce?” is one of the basic questions of economics regardless of the economic system – command, market, or mixed.

To understand it better, you should study two concepts – scarcity and allocation. Not a single country in the world has unlimited resources at its disposal, and this scarcity drives its society to allocate them in a meaningful way. It is only possible if producers are able to determine their core consumers. A product can be perfect on paper.

However, if it is marketed toward a wrong demographic, it is bound to fail. It is only smart to study a typical customer and their key characteristics. For example, you can learn about their age, gender, income level, interests, hobbies, and life habits.

A big production on the factory.
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