Editing Microeconomics (section)

=== Allocation of scarce resources ===
Individuals and firms need to allocate limited resources to ensure all '''agents''' in the economy are well off. Firms decide which goods and services to produce considering low costs involving labor, materials and capital as well as potential profit margins. Consumers choose the good and services they want that will maximize their happiness taking into account their limited wealth.<ref name=":1">{{cite book |last1=Perloff |first1=Jeffrey M. |title=Microeconomics |date=2018 |location=New York|isbn=978-1292215693 |edition=8th}}</ref>

The government can make these allocation decisions or they can be independently made by the consumers and firms. For example, in the former Soviet Union, the government played a part in informing car manufacturers which cars to produce and which consumers will gain access to a car.<ref name=":1" />