A baker in Arkansas wants to sell expensive cakes she has already determined the tools and resources she will need to produce them which of the following list answers the third basic economic question for her business
A. Her Bakery would be allocated in an affordable area of Arkansas
B. She would sell cakes to local residents with high incomes
C her product line would also include cupcakes and pastries
D if she would obtain flour and sugar from local manufacturers
Google "basic economic question for business."
The third basic economic question is "How will goods and services be produced?" In the context of the baker's business, the answer that best addresses this question is option D: if she would obtain flour and sugar from local manufacturers. This indicates how the baker plans to acquire the resources (flour and sugar) needed to produce her cakes.
To determine the answer to the third basic economic question for her business, which is how to produce the cakes, we need to assess the provided options.
A. Her Bakery would be allocated in an affordable area of Arkansas: While this option may be relevant to the question of where to produce the cakes, it does not directly address how to produce them. It focuses more on the location aspect.
B. She would sell cakes to local residents with high incomes: Again, this option is related to whom she would sell the cakes to, rather than how to produce them. It focuses more on the target market and pricing strategy.
C. Her product line would also include cupcakes and pastries: This option implies diversifying the product line by including cupcakes and pastries, which is relevant to the question of what to produce, not how to produce. It explores the product range rather than the specific tools and resources needed for production.
D. She would obtain flour and sugar from local manufacturers: This option directly addresses the resources needed for production. By sourcing flour and sugar from local manufacturers, the baker establishes a supply chain strategy for acquiring key ingredients. Therefore, this option answers the third basic economic question: how to produce the cakes.
In conclusion, the answer to the third basic economic question for the baker's business would be D. She would obtain flour and sugar from local manufacturers.