How Do I Solve Fundamental Economic Problem Under Capitalismits 4 My Assignmentits Due In 2 Days.Plzzz?
Under capitalism, the first two are determined based on supply and demand. When there is more demand for something than there is available supply of it, the profit margin for producing that thing increases and capital investments will be made to increase production, producing profits for the investors. However, it will be to the investor’s benefit to not produce an excess, as this would result in there being more supply than demand, which depresses the price and destroys the profits. How to produce is simply, by the most efficient and economical means possible. The capitalist’s (investor’s) principal goal is to maximize profit, which is accomplished by producing the needed goods or services in the most efficient (= least expensive per unit produced) means possible, and heavy investment in reasearch and development to improve efficiency will generally pay off handsomely. For whom to produce — simply put, for those who want something enough to pay for it. There is an underlying assumpti
