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. why the difference?

Respuesta :

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. This is because in command economics input availability is determined by a central planner who may not correctly respond to customers' demands.

A market economy is a monetary system where two forces, known as deliver and demand, direct the production of goods and offerings. marketplace economies are not controlled by way of a government (like a central authority) and are an alternative based on voluntary trade.

In a command economy, the vital government dictates the level of manufacturing of goods and controls their distribution and charges. Proponents of command economies argue authorities manipulating in places of non-public organizations can make certain the honest distribution of goods and offerings.

A planned economy is a type of monetary system wherein funding, production, and the allocation of capital items take area in step with the economic system's extensive financial plans and manufacturing plans. A planned economy may use centralized, decentralized, participatory, or Soviet-kind styles of financial planning.

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