You are a producer who is hoping to create a specific good. Based on what you have learned about resources and scarcity, what factors do you need to consider when producing this good?Give your answer in the form of three to four complete sentences.

Correct Answer:

The producer must identify the resources needed to make the good and determine how scarce and valuable each resource is. The producer should consider the cost and availability of these resources and whether less scarce resources could be used as substitutes. A scarce resource may increase the value of the final product, while a less scarce resource may make production easier but give the product a lower value.