Answer:
?How to produce? refers to the choice of technique of production. It has two categories:
(1) Labour-intensive technique: Which implies greater use of labour than capital. It promotes employment.
(2) Capital-intensive technique: Which implies greater use of capital than labour. It promotes efficiency and accelerates the pace of growth.
The choice of technique depends on the type of product manufactured by a company. For e.g., - A food and beverage company can use hundreds of workers with little application of capital (machinery) or can use more machines with few workers in order to produce the desired quantity of biscuits and soft drinks.
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