In a laissez-faire system, the price mechanism dictates the production planning decisions.

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In a laissez-faire system, there is minimal government intervention, and the economy is left to be run by the forces of supply and demand. The price mechanism, which is the interaction of buyers and sellers in a market, determines the prices of goods and services. Producers make their production planning decisions based on this price mechanism, as they try to maximize their profits in response to market demand.

In a Laissez-Faire System, the Price Mechanism Dictates the Production