The market mechanism allows an economy to simultaneously solve the three economic problems of what, how, and for whom. Consumers indicate their preferences over what is produced through their willingness to pay for a good or service "The dollar votes" . Firms respond to this by considering the mix of final products that will maximize their own profits, that is, the difference between their revenues from sales and their production costs. This must involve the question how, since firm production costs are determined by the prices of inputs and technology used in the production process. Once these questions have been addressed, for whom is found to be those consumers who have the money to pay for the goods and services produced.
jay jay
They are trying to solve economic problems.
What, How and for whom goods and services should be produced.
traditional economic system command economic system market economic system
The market mechanism allows an economy to simultaneously solve the three economic problems of what, how, and for whom. Consumers indicate their preferences over what is produced through their willingness to pay for a good or service "The dollar votes" . Firms respond to this by considering the mix of final products that will maximize their own profits, that is, the difference between their revenues from sales and their production costs. This must involve the question how, since firm production costs are determined by the prices of inputs and technology used in the production process. Once these questions have been addressed, for whom is found to be those consumers who have the money to pay for the goods and services produced.The three problems of economic organization are for whom, how and what. Every type of economy is confronted by these problems.
scarcity,choice ,demand
They are trying to solve economic problems.
What, How and for whom goods and services should be produced.
market economic,command economic and mixte economic
traditional economic system command economic system market economic system
The market mechanism allows an economy to simultaneously solve the three economic problems of what, how, and for whom. Consumers indicate their preferences over what is produced through their willingness to pay for a good or service "The dollar votes" . Firms respond to this by considering the mix of final products that will maximize their own profits, that is, the difference between their revenues from sales and their production costs. This must involve the question how, since firm production costs are determined by the prices of inputs and technology used in the production process. Once these questions have been addressed, for whom is found to be those consumers who have the money to pay for the goods and services produced.The three problems of economic organization are for whom, how and what. Every type of economy is confronted by these problems.
Job enrichment, Job enlargement and Job rotation are the three programs developed to solve motivational problems.
scarcity,choice ,demand
market economy planed economy mixed economy
Market
One of three economies probably, but not market economy.
A mixed economy combines elements of traditional, market, and command economic models to answer the three basic economic questions.
The three aspects in free market economy are capitalism is a free market system of trade, governed exclusively on the economic principle of supply and demand. You need all of these to have a free market economy.