Provide a concise description of how a free market system answers the questions of what to...

Provide a concise description of how a free market system answers the questions of what to produce, how to produce, and for whom. Be sure to include information on the role of prices in allocating resources in this system

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It can be mentioned that a free market system and answer the question of what to produce based on the existing demand conditions the demand-supply in the market forces and in a free market system, they actually decide which output or product has demand and how to produce is obtained in a free market system by understanding the level of resources one has to produce the product and identifying the optimal quantity of the resource to produce that product where the optimal quantity can include combination of resources and the optimal quantity is when the output can be produced at a minimal cost where the prices of each input is different. The market forces can be applicable in a free market system which can decide for whom to produce based on the willingness to pay where if the price is is more than the willingness to pay then it is not for that person and if the price is less than or equal to the willingness to pay, then it can be observed that the product can be produced for them.

Rahul Sunny answered 2 weeks ago

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