Question

How will firms solve the problem of an economic surplus ?

Answer 1

This is about how the market system and the command economy try to cope with the economic scarcity. In the market system, producer produces goods that the market demanded with the resources owned by the producer without the intervention of the government. Whereas in the command economy, the government owned all the resources, make choice on allocating the resources to produce a product and also decide on how to distribute the product