Because of these extreme allocation problems, authorities will have to impose minimum production quotas and maximum consumption quotas, based on their personal estimates of each individual's "ability" and "need" rather than on the inflated apparent "needs" and deflated apparent "abilities." Furthermore, production quotas of consumer goods can only by met if production quotas for their capital factors of production are also imposed. In short, all economic processes must be centrally "planned": the authorities determine what goods will be produced, by whom they will be produced and in what quantities, what quantities of factors of production will be required, and what quantities of the different end goods various consumers will be allotted.      Next page
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