what are the solution of central problem of economy in detail

Solution to central Problems in a Capitalist Economy

What to produce?

Those goods will be produced for which the demand is high

How to Produce?

Those Production techniques will be employed which will minimise the cost of Production.

For whom to Produce?

Only for those who have the capacity to pay

Solutions to Central Problems in a Centrally Planned Economy

What to Produce?

Those goods will be Produced which will enhance the welfare of the society as a whole

How to Produce?

The Production technique which suits the economics conditions in the best manner will be used.

For whom to Produce?

For the society as a whole

Solution to Central Problems in a Mixed Economy

What to Produce?

This Problem is solved through Price mechanism and also through central planning.

How to Produce?

Private sector decides to employ those production techniques which reduces the cost of Production.

For whom to Produce?

The final Product Produced by the private sector is distributed through price mechanism while by Public Sector it is distributed through Public Distribution system.