in a market economy, who answers the question "how to produce"?

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in a market economy, who answers the question "how to produce"?

2007-01-25 11:02:29 · 2 answers · asked by *Paulina* 2 in Social Science ➔ Economics

2 answers

Entrepreneurs decide, in response to forces of supply and demand.

(As you can see being reported in many company Annual Reports, especially those of businesses in the process of changing what they're doing.)

2007-01-27 02:42:41 · answer #1 · answered by MBK 7 · 0⤊ 0⤋

The producers decide. In a comand economy the producers also decide how to produce.

2007-01-25 13:57:38 · answer #2 · answered by Roadkill 6 · 0⤊ 0⤋