Consumer preferences and cost of production are important factors for producers to consider when making decisions about a product. Producers must determine the style, price, quality, and costs of production while considering consumer needs to earn profits. For a new shoe, the producers chose a high-quality, high-cost shoe endorsed by a celebrity athlete to target that athlete's fans and others seeking an expensive shoe made with skilled American labor.

1. Economics 101 A Running Decision By Cameron Oyen, Will Fry, Brent Quade, and Samantha Selby