Who makes the resources for a product available, and why?

Question

Please answer in Economics!

Answer 1

It depends on the product and the country. For natural resources, most countries have state control over the commanding heights of the economy. They may have an energy company, but it is operated under the state. In the U.S. there are open markets with companies that do this. The idea is to spur competition, which leads to better quality and better pricing.

In a market system, like the U.S., products get produced because consumers create a desire or demand for it. This creates a market and establishes a price that someone is willing to pay based on the current level of product. It is entrepreneurs and businessmen who see these opportunities and take advantage of them. This is what makes the markets system so great is its ability to establish a mechanism (price) in which buyers can signal the opportunity to producers that there is a demand at a particular level. If the producer can make the product and make a profit at that level, they will produce it. If not, they will not produce it. The market also has a way of weeding out those who can't make the product efficient enough and those who can't provide the desired service or good.