Decision making in a market economy?

Answer 1

Is decentralised.

For example....
Individual consumers decide what they want to buy with the money they have earned, saved, or borrowed.

Producers individually decide what to produce given their knowledge of the market(s) they are going to try and sell their output into.

Banks decide, one customer at a time, how much to lend to any person or business which banks with them.


In contrast, a "command economy" is characterised by centralised decision taking, ie "central planning".