(i) Suppose the United States adopted central planning for its economy, and you
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Question
(i) Suppose the United States adopted central planning for its economy, and you became the chief planner. Among the millions of decisions that you need to make for next year are how many compact discs to produce, what artists to record, and which consumers should receive the discs. To make these decisions intelligently, what information would you need about the compact disc industry? What information would you need about each of the people in the United States? How well do you think you could do your job?Explanation / Answer
suppose the United states adopted a central planning for its economy, and I'm became the chief planner. Among the million of decisions that I need to make are how compact discs to produce, what artists to record and which consumers should receive the discs. So to make these decisions intelligently , The information I need about the compact disc industry are:
1. In every single market we must have complete information to allocate resources.
The information I need about each of the people in the U.S are:
1. We need to know how consumers behave , about their preferences to allocate the resources in the best way.
2. We have to coordinate the supply: the artists, the demand and the consumers. We have to know how many compact discs, each artist they have to produce against the match that they will have (the current demand).
If we have the perfect or complete inforation regarding people and the compact discs industry , then we can do well in our job.
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