A market economy answers the question "how" will goods be produced by focusing on

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A market economy focuses on producing goods in the least-cost method possible. This means that businesses prioritize efficiency and cost-effectiveness in their production processes to gain a competitive advantage and maximize profits. Consumer sovereignty and dollar votes play a role in a market economy, but they are more aligned with the question of "what" goods will be produced rather than "how." The ability to afford goods is more relevant in a command economy, where the government controls the production and distribution of goods.

A Market Economy Answers the Question "How" Will Goods Be