Project Log Entry #1
How do gasoline companies answer the fundamental economic questions when price controls are not in place?
For whom, they must think of all groups that would be needing the fuel across the nation. Consumers will need it somehow no matter what. What to produce, this will depend on the demand for what kinds of fuel consumers need or want at the time. This will also make the price fluctuate depending on what resources are being used. If there is a sufficient amount of that resource the price could be lower but if there is not as much the price will be higher. How to produce it, this will depend on how much of a given resource you have. If you have lots of oil the prices will be lower because there is a surplus of oil. Whereas if it is a fossil fuel there might not be as much so fuels containing the fossil fuels would be more expensive. Also land labor and capital are very important in making the production happen. People to find and mine the fuel, land to find the fuel on, and capital for the supplies and materials needed to retrieve the fuel.
