Question

Explain the central of the choice of product to produce

Answer 1

This problem involves selection of goods and services to be produced and ... It involves deciding the share of different factors of production in the total national product of the country.

Answer 2

The quantity in which a commodity is to be produced is set at that level where demand equals supply. If quality produced is more or less, then there will be dis equilibrium in the market and price will fluctuate. Hence, to maintain stable equilibrium price it becomes necessary to make demand and supply equal. This rule is applicable for each commodity. In this way, first central problem is solved.