how the problem of resource allocation solved in a free economy ?

1.	how the problem of resource allocation solved in a free economy ?
Answer» In a\xa0free\xa0market\xa0economy, prices of commodities in the market are affected by the forces of demand and supply. This generates open competition in the market which leads to optimum\xa0allocation\xa0and utilization of\xa0resources\xa0in the\xa0economy\xa0without any planning or intervention of any authority.\xa0The\xa0resource allocation problem\xa0seeks to find an optimal\xa0allocation\xa0of a fixed amount of\xa0resources\xa0to activities so as to minimize the cost incurred by the\xa0allocation. ... This can be viewed as a special case of the nonlinear programming\xa0problem\xa0or the nonlinear integer programming\xa0problem.

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