two friends make baked goods for a living. they buy the ingredients and follow their own recipes. which…

Brief Explanations:

The question is about identifying which basic economic question is relevant to two friends making baked goods. The key here is to recall the fundamental economic questions. The "What to produce?" question is about determining the type of goods or services. Since they are making baked goods (a specific type of product), this question applies. The "How to produce?" question is about the methods of production. They follow their own recipes (a method), so this also applies. The "For whom to produce?" is about the target consumers. But the problem doesn't mention specific consumers. The "Why to produce?" is more about the motivation (like profit, hobby etc.), which isn't clearly addressed here.

Answer:

What to produce?, How to produce?