In market economies, firms rarely worry about the availability of inputs to produce their products, whereas in command economies input availability is a constant concern because in command economies, input availability is determined by planners that may not correctly respond to consumer demand. in command economies, input availability is determined by a market that may not provide adequate inputs. in market economies, buyers of inputs know that consumers want the product. in market economies, buyers of inputs know that sellers want to earn profits ...

Question

Business

Antoine Vazquez

19 October, 21:12

In market economies, firms rarely worry about the availability of inputs to produce their products, whereas in command economies input availability is a constant concern because in command economies, input availability is determined by planners that may not correctly respond to consumer demand. in command economies, input availability is determined by a market that may not provide adequate inputs. in market economies, buyers of inputs know that consumers want the product. in market economies, buyers of inputs know that sellers want to earn profits ...

+2

Answers (1)

Know the Answer?

Gizmo · Answer 1

Answer: In market economies, buyers of inputs know that sellers want to earn profits.

Explanation: In a command economy, the state decides about what goods are to be produced, how much they must be produced and at what price they must be distributed in the society. While, in a market economy decisions about investment and production are determined by the forces of demand and supply. A command economy focuses on social welfare and equal distribution. While a market economy is driven by the profit motive. Thus, it is easy for firms to buy inputs in a market economy than in a command economy. In market economies, buyers of inputs know that sellers want to earn profits.