Sonny owns a grocery store. He realizes that his profits will increase if he can buy more automated check-out machines and then employ fewer workers who check out each shopper. This decision to replace labor with capital is an example of what fundamental economic question?

Question

Quizplus · Accepted Answer

Sonny's decision to replace labor with capital (automated check-out machines) directly addresses the question of "How should it be produced?" This involves choosing the method or technology used in the production process.

Sonny Owns a Grocery Store